Messari prophesies the slow but inevitable death of Ethereum Classic (ETC)

Messari prophesies the slow but inevitable death of Ethereum Classic (ETC)

A hijacking of minors in progress? – The approach of the famous “The Merge” on Ethereum continues to fuel the discussions of enthusiasts. Between miners, developers, fans and observers: everyone has their own prognosis and his appreciation. Fork, not fork, revolution, tragedy: difficult to see clearly anyway Vitalik Buterin, the co-founder of the blockchain, adds his grain of salt and takes out his crystal ball. While waiting for D-day, Messari observed a renewed interest ETH miners for the Ethereum Classic (ETC) network. ETC, plan B for ETH miners? Not that easy…

The arrival of the Merge creates a renewed interest in Ethereum Classic…

As a reminder, what is called “The Merge” will be the passage of the blockchain Ethereum from a proof of work to a proof of stake (proof of stake). And beyond technical or environmental considerations, it is the role of minors which interests us today. Ether mining represents 97% of all mining via GPU system, i.e. by graphics card. And Messari – the well-known crypto data provider – advances the figure of $24 million from this activity.

Inevitably, you understand that if we unplug everything overnight, some installations will end up in the water; hence the grumbling minors and the search for an escape route. And suddenly, Ethereum Classic appears as a Potential El Dorado for all mining farms struggling for future profitability. Unfortunately, ETC mining only pays $700,000 per day, which all minors will have to share. In doing so, the massive arrival of new machines will only increase the difficulty of mining, mathematically lowering profitability. A vicious circle that will not satisfy anyone!

We are approaching D-Day on the Ethereum network and the cryptosphere is buzzing with a thousand rumours…

>> Come pick up the last ethers the old-fashioned way before The Merge. Sign up on FTX (commercial link) <<

… but that would only be temporary, according to Messari

This all the more so since the course of the ETC is far from being a long calm river. Regularly boosted through media announcements or windfall effects, the vhastheir foundation of the network remains to be demonstrated. Messari thus makes a clear statement on the ETC…

” [Le réseau ETC] has 2 times fewer active addresses than Cardano. (…) Its current level of development is less than a tenth of Ethereum and Cardano and has not seen a significant change in transaction volume since 2018.”

… before doing a more global reflection on the cryptocurrency market and sealing the fate of the most famous fork of Ethereum:

“Ultimately, pricing should have a fundamental connection to network usage and underlying economic activity. Unfortunately for ETC holders, there aren’t many either. »

It is not for us to deliver an opinion on such and such a project, but it is clear that sometimes the trend of a token is perfectly decorrelated of its intrinsic value. Ethereum Classic will probably benefit in the coming weeks from a surplus of interest from certain investors or miners wanting to ride the wave of merge. But does that make it a future project? Messari decided. As for us, we will continue to keep you informed of the progress of this long-awaited or dreaded event.

And you? Do you grant Ethereum Classic a reprieve or even a bright future? Wait for the consequences of The Merge before deciding. Sign up today on the benchmark crypto exchange FTX. In addition, you benefit from a lifetime reduction on your trading fees (commercial link, see conditions on official website).

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