In the cryptocurrency space, the key to success is often following the current narrative. Matching deals is the most lucrative strategy for investors. The Ethereum merger is one of the most important stories in crypto at the end of 2022.
Some interesting data about the current mining market for Ethereum. ETH accounts for 97% of the daily revenue of GPU mineable coins. The ETH mining industry is valued at around $19 billion. In this article, we will present two projects using PoW that we think are worth watching.
Ethereum (ETH) to benefit from merger
Ethereum itself is the most obvious beneficiary. The merger is just the first in a series of five major upgrades. Ethereum (ETH) will validate the network in the staking contract. This means that more tokens will be locked, automatically reducing the supply. At the same time, demand will increase as higher APRs can be achieved through staking.
ETHW and ETHS
The owner of one of the prominent mining companies recently announced that he supports a fork of ETH — called ETHW (Ethereum-PoW).
This fork works similarly to ETC/BCH. After the merger, ETHW (ETH – PoW) and ETHS (ETH PoS) should be available. The difference is that the DeFi protocol will support ETHS, continue to develop and update in the new chain after the merger, while the old ETHW remains as-is.
Fluctuations are expected during the event, and there is no way to know the value of ETHW after the fork. Some speculate that the price will find a balance between 1-5% of Ethereum’s market cap.
While reducing issuance, ETH also has the opportunity to become a deflationary asset. Energy consumption has dropped by 99%, making the coin more attractive to investors.
For reference, ETC has little to no development ecosystem and currently accounts for about 4% of ETH’s market cap. There have been recent rumors that stETH holders may not be eligible for the ETHW airdrop.
Poloniex has announced that they will support and list both tokens (ETHW and ETHS).
Ravencoin is designed to solve the problem that transactions in other cryptocurrencies such as Bitcoin can accidentally delete assets.
Ravencoin creates a digital peer-to-peer network that uses blockchain technology to send assets quickly and easily. Doing so avoids the risk of the asset being accidentally deleted during the transaction.
The main feature of the project is that there is no ICO. Therefore, no coins are reserved for the team or founders.
All coins are open to the public. This creates excellent price potential if the project can be built for the long term. But the risks should not be ignored.
Ravencoin’s price fluctuates wildly, and the cryptocurrency is based on Bitcoin’s code, so it has limited smart contract capabilities, but it runs on PoW. So, maybe in the future, when Ethereum miners look for another coin/token, they will find Ravencoin.
Ethereum Classic (ETC) as Plan B
Ethereum Classic is a hard fork of Ethereum that was developed after being hacked in 2016 to preserve Ethereum’s original blockchain. Smart contracts and dApps are still supported and maintain a proof-of-work consensus process that eventually attracts many miners to this blockchain.
As Ethereum eventually moves from PoW to PoS, current Ethereum miners will have to find new use cases for their structures or new PoW networks, as mining will no longer be an option for Ethereum. The chart already shows some speculation from participants that it might gain the hashing power of Ethereum. It is one of the currently available GPU candidates. There has been a breakout in volume recently.
Many see ETC as a backup in the event of a failed Ethereum merger. Due to good compatibility, projects can quickly “save” themselves on ETC. It is therefore foreseeable that the Ethereum Classic price will be one of the beneficiaries of the Ethereum merger.
For the price of Ethereum Classic, it is as high as 215%. Like ETC coin, hardly any other cryptocurrencies posted gains in the last month.
More projects benefit from Ethereum merger
But there are other interesting projects that might be worth a look. Here are some examples:
- Curve Finance (CURVE) & Convex Finance
The ETH network is unlikely to make further progress after the merger until the upgrade below. Until then, they will combine your transaction with the narrative surrounding Ethereum, which can be dangerous and potentially beneficial. In any case, mature strategies should be considered first.
Current rumors and news may guide market performance in the short term. However, in the long run, a successful Ethereum merger will undoubtedly lead to an optimistic outlook, as PoS opens up many new opportunities for the network and is more in line with the public zeitgeist.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/guess-who-will-benefit-the-most-from-the-ethereum-merger/
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