Ethereum PoW Plummets 55% Upon Launch

Ethereum PoW plummets 55% upon launch. After the long-awaited launch of The Merge, the new cryptocurrency EthereumPow fell 65% upon launch. Even though crypto has seen a spike in mining in recent days, does ETHW still have a chance?

ETHPoW what is it exactly?

EthereumPoW is a branch (a fork) of the famous Ethereum called Proof-of-Work or proof of work in French. Proof-to-work is a widely used blockchain consensus mechanism. Nevertheless, even if it is very secure, it poses problems of energy consumption and governance.

This technology is based on mining, to create new blocks and validate the authenticity of transactions. As you will have understood, Ethereum PoW is simply a cryptocurrency that works exactly like the old Ethereum system.

EthereumPoW was launched following the merger of The Merge but seems to be facing technical issues. The creators of EthereumPoW have posted a tutorial to connect your wallet to ETH PoW. However, some users have reported having problems linking their metamask wallet to ETH PoW.

The problem would simply come from a bad ID. This would be similar to the Bitcoin Cash testnet. Internet user @cascadia_coin reported this on the networks:

“ The network with channel ID 10001 may be using a different currency symbol (BCHT) than what you entered. Please check before continuing ”.

The blockchain company Consensys which is closely related to Ethereum has published a technical response to this ID issue:

“ The channel ID is a node-managed property of the channel. It is used for protection against the rejection of transactions. Setting the Chain ID has the effect of changing one of the parameters of a transaction, namely the V parameter. The v parameter is set to 2*ChainID + 35/36. For the Ethereum mainnet, which has a chain ID of 1. This means that all transactions are 37 or 38 ” in value.

However, if we look at the crypto exchange platforms, we can see that they all accept Ethereum PoW (ByBit, FTX, Kraken…) despite all the problems that Ethereum PoW is currently experiencing.

These technical problems caused the value of Ethereum PoW to drop drastically as can be seen on this graph. ETHPoW price today is $12.88 with a 24-hour trading volume of $152,028,763. ETPoW is down 55.01% in the last 24 hours.

A declining hash rate.

If we look at the Hashrate of Ethereum PoW we see a drop since its launch. Indeed it went to more than 80 TH/s at 62.38 TH/s at the time this article was written. However, there has been a slight increase in the last few hours.

The miners seem to have chosen their camp since for comparison the Ethereum Classic had a hash rate of 234.56 TH/s on September 16 and peaked at 310.5 TH/s the day before.

Eric Wall, Chief Investment Officer of Arcane Assets, said ETHPoW miners can no longer continue to mine the chain at current ETHW prices. He added:

“ Daily rewards are 13100 ETH or $354k instead of $20m. There is no way miners will continue to mine the ETHPoW chain no matter how you adjust the difficulty. There just aren't enough rewards in the system to pay the electricity bills. ”

Others decide to move towards RavenCoin, the Hashrate of this one has almost tripled in just 2 days. It went from 6.84 TH/s on September 14 to 17.85 TH/s today.

Miners are therefore looking for new cryptos to heat up their machines and it is very likely that we will see other migrations in the coming days. Indeed, miners prioritize profitability and Ethereum was one of the most profitable.

READ MORE: What will The Merge change for Ethereum?