Old school Ethereum takes a -60% plunge: Ethereum-PoW, barely born and already in trouble

Miners in trouble? – In the hours following the onset of The Merge on Ethereum (ETH), the minors had to continue their adventure on Ethereum-PoW (ETHW). Indeed, this last network has retained the proof of work (PoW) as the basis of its consensus. Except that, contrary to The Merge which went well, the ETHW network knows some problemsand the price of its token suffers.

A conflict between Ethereum-PoW and a Bitcoin Cash testnet

Refusing the transition to Proof of Stake (PoS), brought by The Merge, ether miners have largely wanted to transfer their machines to Ethereum-PoW. But unfortunately it didn’t happen without a hitch.

As the reports notably CoinDesk, several users of this network – which therefore remained in Proof of Work – would not have not been able to access the servers of this blockchain. Indeed, the information provided on the official Twitter account of the project does not allow adding the ETHW network to a digital wallet, such as MetaMask.

The problem would come from a identifier conflict of the ETHW blockchain with that of SmartBCH. This last network happens to be a testnet of a scalability solution of bitcoin-cash (the 2017 fork of Bitcoin). Thus, users trying to connect their wallet would get this mistake :

“The network with channel ID 10001 may be using a different currency symbol (BCHT) than what you entered. »

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ETHW prices crash nearly 60%

Between these initial messand the fact that some sell immediately their ETHWs, the price of the token has depreciated sharply since this fork. Because although it is very badly seen on the side of the faithful to Ethereum-PoS, this pro-miner version has still been listed on many exchanges. In fact, some crypto platforms have even opened ETHW trading from August, with the first serious announcements on this fork.

But since The Merge, as we said above, the Ethereum-PoW token is no longer popular. While the ETHW price had stabilized around $30 to $33 (even with a peak in volatility at $60), it has now fallen between 10 and 13 dollarsi.e. a reduction of the order of 60%.

Price of ETHW against the US dollar – Source: CoinMarketCap

Will this Ethereum-PoW network succeed in the long term? Anyway, his beginnings already seem winded. Despite significant support from miners for it, it is on the Proof of Stake version of Ethereum that all the apps Challengefond of stablecoins. Indeed, stablecoin issuers and projects have all placed their trust in The Mergeand therefore to this transition to PoS.

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John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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