Ethereum Classic up over 50% in a week as ETH Merge gets closer
Ethereum Classic (ETC) was the biggest winner among the top 100 cryptocurrencies at Tuesday morning trading, gaining 22% over the past day.
In addition to gaining a boost from the overall crypto market rally, Ether Classic (ETC) recorded significant gains, partly due to network activity on the main Ethereum blockchain, especially the merger upgrade scheduled for September. In fact, this factor seems to be driving ETH prices, while pushing ETC prices to breakout.
The presence of ETC bulls has been felt in the last seven days, during which Ethereum Classic’s price has delivered strong upward momentum marking an end to weeks of trading in a consolidation phase.
Consequently, Ethereum Classic, the inheritor of the original Ethereum blockchain, has gained 51.34% in the last seven days, trading at $22.51 by press time, according to CoinMarketCap data.
Whats more, ETC ranks third among best-performing cryptocurrencies in the last seven days behind Lido DAO (151.03%) and Polygon (58.73%).
Impact of the Ethereum Merge upgrade on Ether Classic (ETC) price
The Merge upgrade will likely benefit assets like ETC since it will see Ethereum shift from the energy-intensive proof-of-work (PoW) consensus mechanism to the proof-of-stake (PoS) protocol. Therefore, ETC has the potential to accommodate migrating Ethereum miners since they will need minor upgrades to start mining on Ethereum Classic.
As the Merge nears, the migrating ETH miners will likely trigger a rally in Ethereum Classic price. A majority expect the current hash rate dedicated to Ethereum will also transition over to the ETC network after the upgrade as the easiest choice for migrating miners since it prevents their equipment from becoming useless.
Following the rally, the main concern will be whether ETC can sustain this momentum. This sustainability could continue if more inventors continue to buy ETC. However, investors should also be aware of strong selling pressure that could trigger a sharp pullback.
Similarly, news about the Merge update seems to have affected the value of Ether, which has also risen in the last week.