Ethereum (ETH) continues to see interest from crypto investors in anticipation of the upcoming merge upgrade. Interest has also spread to other related cryptocurrencies such as Ethereum Classic (ETC), which is also seeing a small rally.
As of Sept. 5, Ethereum has emerged as the most trending crypto to lead the seven-day chart, according to CoinMarketCap data. The asset, which is trading at $1,564, has posted gains of 8.13% over the past seven days.
At the same time, Ethereum’s legacy chain Ethereum Classic emerged as the fifth overall cryptocurrency with gains of 3.83% over the past seven days, trading at $32.09.
The top 5 trending cryptocurrencies. Source: CoinMarketCap
Ethereum recovers despite market sell-off
Ethereum’s rally came despite a significant sell-off in the broader crypto market. However, the rally can be linked to the hype surrounding the merge upgrade, which is seen as bullish sentiment for the crypto.
In particular, the upgrade that transitions the blockchain to a pro-of-stake (PoS) is also said to make Ethereum a deflationary asset. However, it is important to note that part of the market believes Ethereum can only sustain gains if the upgrade is successful.
At the same time, caution is generally required with regard to the upgrade, as it is the most complex update in the Ethereum network to date. The Ethereum Foundation also increased the merge bug bounty bonus to $1 million to facilitate a smooth transition.
Before the September 15th event, all public testnets have been upgraded and ready for the Ethereum mainnet.
ETC benefits from fusion dynamics
In addition, the upgrade is also partly responsible for generating interest in Ethereum Classic. In this case, ETC has emerged as a coveted target for miners as the merger eliminates Ethereum mining.
As the upgrade looms, Ethereum miners will only need minimal updates to start mining ETC. This comes after Ethereum creator Vitalik Buterin invited miners to switch to the ETC chain, noting that it is a “perfect chain” for PoW.
Similarly, ETC continues to receive support from various crypto players. As reported by Finbold, Leon Lv, the CEO of AntPool — the mining pool affiliated with cryptocurrency mining hardware giant Bitmain — announced that the organization has invested $10 million in the Ethereum Classic ecosystem.
Overall, the ETC rally has shown historical consistency, seeing upward movement in prices in anticipation of Ethereum upgrades. This was highlighted in April 2021 after ETC rallied significantly, coinciding with Ethereum’s Berlin upgrade.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.
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