That is now clear Ethereum (ETH 0.72%) The forthcoming merger is causing a lot of excitement among investors. Since hitting a cycle low of $897 on June 18, Ethereum is up 38%, outperforming Bitcoin as investors look forward to the upgrade that marks Ethereum’s transition from a proof-of-work mechanism to a proof -of-work mechanism will see. stake mechanism.
The benefits of The Merge for the Ethereum network and its participants are well documented, but several other cryptocurrencies are already benefiting from significant gains. Here are two hidden beneficiaries of The Merge.
Ethereum classic (ETC -0.71%) dates back to the Ethereum DAO hack in 2016 when what we now know as Ethereum was forked from what is now known as Ethereum Classic. Although it shares Ethereum’s code and many of its characteristics, it is completely separate and independent. As such, it will remain a Proof-of-Work token after The Merge and has no intention of implementing Proof-of-Stake. Ethereum founder Vitalik Buterin recently gave his blessing to Ethereum Classic, saying that people who prefer proof of work should use it.
Ethereum Classic price has almost tripled since June 18th. Here’s why – Ethereum miners who use their rigs to process transactions and secure the Ethereum blockchain are being let down by the move to a proof-of-stake protocol. and Ethereum Classic is one of the few blockchains they can switch to where it’s worth deploying their gear. Ethereum Classic can be mined using both GPU (Graphic Processing Unit) and ASIC (Application Specific Integrated Circuit) mining equipment. Antpool, a large Bitcoin mining pool backed by Chinese mining equipment maker Bitmain, recently invested $10 million in developing projects on the Ethereum Classic blockchain to fuel growth and attract new projects to its network to win.
Ethereum miners cannot mine Bitcoin (BTC 0.58%), due to the radically different mathematical processes the two systems use. However, you can mine for Ethereum Classic, which is now the third largest proof-of-work crypto by market cap after Bitcoin and Bitcoin Dogecoins (DOGE 1.42%). Ethereum miners are gradually flocking to Ethereum Classic, and the network’s hash rate, which measures the computing power used to process transactions, is increasing sharply. This is taken as a positive sign by crypto participants as it means the network is healthy and secure.
While some Ethereum miners led by Tron‘s (TRX 0.52%) Justin Sun and Chandler Guo (one of the key figures behind the Ethereum Classic fork) are pushing for a new Ethereum proof-of-work fork called “ETHPOW”, it is more likely that Ethereum miners will migrate to Ethereum Classic, which is already the Fall is valued at around $5 billion and has an established infrastructure and community around it, unlike ETHPOW, which would start from scratch.
Even though mining Ethereum Classic doesn’t seem to be as profitable as mining for Ethereum, at least in the near future, it at least gives miners an opportunity to extend the useful life of their equipment and generate some income. In the longer term, it will be interesting to see if Ethereum Classic can translate this short-term momentum into long-term network growth.
Outside of Ethereum Classic, Raven Coin (RVN -7.06%) is one of the other remaining destinations that Ethereum miners can migrate to. Ravencoin is the 70th largest cryptocurrency by market cap and is modeled after Bitcoin in that the total supply of Ravencoin that can ever exist is 21 billion tokens. Its price is up more than 250% since its cyclical bottom on June 18, and is up almost 75% in the last month alone.
Ethereum miners using GPU (Graphic Processing Unit) mining rigs can head straight to the Ravencoin network and find a welcoming home there. Ravencoin is ASIC-resistant, meaning its mining algorithm prevents expensive, purpose-built ASIC miners from dominating mining rewards. This allows more everyday users and miners to reap the rewards of mining. The hash rate on the Ravencoin network is rising sharply, recently hitting a high not seen since early 2022 when Ethereum miners began settling there.
In addition to its status as a new home for displaced Ethereum miners, Ravencoin also has a lot of long-term potential. It was created as a blockchain for issuance of assets. For example, users can burn Ravencoin to create new tokens and tokenize assets like real estate. This is an interesting use case for Ravencoin as tokenizing a real estate investment would make investing in real estate more liquid and accessible to a wider range of investors.
With a robust community of miners that is widely accessible and interesting potential when tokenization takes off, Ravencoin is both an immediate beneficiary of The Merge and a project with plenty of long-term potential of its own.
Both Ravencoin and Ethereum Classic have been massive unintended beneficiaries of The Merge over the past few months. Looking ahead, both should continue to benefit as displaced Ethereum miners continue to migrate to the remaining Proof-of-Work blockchains. Investing in cryptocurrency is both risky and volatile, but for risk-tolerant investors, both tokens are worth a small allotment. Of the two, I like Ravencoin better thanks to the long-term potential to tokenize assets on its blockchain.