Crypto markets are very concerned about what comes next for Ethereum-Miner

Crypto markets are very concerned about what comes next for Ethereum-Miner

crypto dealer rely on the next blockchain to attract unemployed Ethereum-Miner after the upcoming planned switch to Proof-of-Stake.

The hordes of high-performance graphics chips that once secured the Ethereum network will be practically useless for mining its blockchain, which will give up the energy-intensive proof-of work in favor of your own brand of security. driven consensus.

The markets for digital assets-speculative beasts-have largely set two potential new home for all of these mining rigs: Ethereum Classic (ETC) and Bitcoin Gold (BTG).

The native tokens for both blockchains that were split off by Ethereum and Bitcoin in 2015 and 2017 were by far the top 100 digital assets.

HARD FORKS occur when network participants strive for significant changes to the rules of a protocol and divide the network into two versions. In the case of Ethereum Classic, some tried to protect its unchangeable nature after the DAO hack, whereupon lost funds were reversed.

Bitcoin Gold, on the other hand, has been able to introduce a new mining algorithm that made high-performance asc-rigs superfluous to prioritize the mining with standard graphics processors (GPU) chipsets.

etc rose from $ 153 % from $ 15 to $ 36.50 last month, almost three times as high as the yields of Ether (Eth), which rose by 56 %. ETCS have been unchanged since the beginning of the year.

BTG, on the other hand, more than doubled from $ 15 to almost $ 31 in July and thus exceeded Bitcoin (BTC), which has increased by comparatively lean 16 %. BTG is still around 30 % in the minus in 2022.

As far as the size is concerned, the top 100 tokens (without stable coins and crypto-supported assets) rose on average by 26 %in the course of the month

The hash rate from Ethereum Classic reaches an all-time high

Both ETC and BTG can be broken down with the same GPUs to which Ethereum-Miner rely on. ETC is the second largest cryptocurrency that can be tapped with graphics cards.

The market therefore rely on the fact that the miners of Ethereum the ETHEREUM ETC Ecosystem in their attempts to strengthen the ETC will increasingly support coin nags Jaran Mellerud, Arcane Research Analyst, Blockworks in an email.

"At the current price levels, other GPU mining coins do not deliver approximately enough mining income to support a significant proportion of the current Ethereum Hashrates," said Mellerud. "The only option of the miners to avoid that they dispose of their GPUs and cause the GPU market to crash is to raise the prices of other GPU mining coins such as Ethereum Classic."

For what it is worth, Ethereum Classic has recently attracted more miners. His hash rate (which measures the total computing power in the network) rose by 40 % last month and has now reached the highest level of ever Coinwarz .

The hash rate of Bitcoin Gold, which is far less than that of Ethereum Classic, also rose, but only by 9 %-and it is still a tiny fraction of the initial hash rate from 2017.

The Ethereum hash rate has remained relatively constant all month. With 996 terahashes per second, the network has an almost 38-fold computing power as Bitcoin Gold and Ethereum Classic.

The thawed polygon price campaign leads to an over-performance

The native asset Matic of the Ethereum scaling platform Polygon was the second best performer of the month and recorded profits of 93 %.

The positive mood was initially heated by the pent-up demand for Matic for a number of top-class partnerships that were completed during the year-including shops with Meta and Stripe-said Vivek Raman, Head of Proof of Stake at the crypto finance service company Bitooda.

Raman noticed that polygon also delivered new products in Polygon Avail and SUGENTE and also promoted a strong defi ecosystem with an advance in NFTS and media via Polygon Studios.

"Despite all the successes in business development, the token of polygon suffered from the crypto crash," Raman told Blockworks. “The increase of 93 % in July was probably triggered by the announcement of polygons ZKEVM or a knowledge-free L2 solution that will scale Ethereum.

raman called ZK-Rollups the "holy grail of scaling solutions", with polygon, as one of the first providers, launched a scalable product.

"This, paired with a new focus on the Ethereum ecosystem in July, probably advanced the outperformance of polygon," said Raman.

Defi mood Usurpated Centralized crypto exchange token

Many of these assets, including Leo from Bitfinex and KCS from Kucoin, have burn mechanisms that are bound to the trading volume, which-combined with buyback programs-reduces the overall range when trades are carried out.

But the mood has changed. Leo, the only top 100 digital asset that added value in June, was worth the worst last month with a decline of almost 14 %. Similarly, the offer of Huobi, HT, fell by 7 %, while KCS cut a little better after it rose by about 1.5 %.

The native asset from Convex is strongly intertwined with curve, which leads to a correlation between the two assets, Katie Talati, research manager at the digital-asset management company Arca, told Blockworks.

lenders such as Celsius and Voyager have exploded in the past two months, while the Singapore Stock Exchange Zipmex has stopped withdrawing. "This really shakes the trust of consumers. Will they consider a token to be a stock exchange with which you cannot get your money out? Probably not," she argued.

Talati emphasized that Defi protocols make it possible to see digital assets in asset pools, how much credit and credit is available and what their capital efficiency relationships look like and even on which level liquidations take place.

"There is a lot more transparency. From a narrative point of view, I would say that Blue-Chip-Defi has achieved an outperformance," he said.

. .

The article Crypto Markets Bet Big on What’s Next for Ethereum Miners is not a financial advice.