Although opinions on EthereumPoW remain divided, the alternative chain continues to make headway. In addition, it is building decent DeFi momentum, which is somewhat surprising. Unfortunately, that didn’t keep the ETHW Prize afloat, but things can still turn around.
Ethereum PoW x DeFi
When a group of miners ignored The Merge, there were concerns about this approach. The continuation of the ETH Mint would not be possible once the network switched to proof-of-stake. So the team instead relinquished the Ethereum chain and ignored the PoS transition. It creates a home for the many ETH miners that would otherwise be evicted.
Although these miners could choose to mine Ethereum Classic, that would not necessarily be viable. This network cannot properly sustain an influx of thousands of miners for long periods of time. Having said that, establishing EthereumPoW might not be the optimal idea either. With miner earnings looking a bit grim, time will tell how that plays out.
One intriguing development is how decentralized finance gains hold up on EthereumPoW. While TVL’s $3.66 million isn’t spectacular, it remains surprising. In addition, this value continues to rise practically every day. It’s not impossible to surpass the $5 million total locked value, although it might not last all that long.
With 12 DeFi protocols on the network, things are looking good. However, ten of the twelve are DEX, with the other two comprising yield farming and a prediction market. Seeing such DEX dominance is not uncommon, but it is also not a sign of long-term health. LFGSwap represents nearly 53% of the combined TVL, followed by UniWswap and PowerSwap. Many people are curious as to where things might go next for DeFi on EthereumPoW.
EthereumPoW Hashrate looks healthy
Despite conflicting opinions on ETHW, miners see merit in exploring this chain. The network has a mining capacity of over 43.7 terahash per second. That might not seem like much, but it is evident that many former Ethereum miners are now trying to pay off their rigs with ETHW. They will need all the luck and help they can get, however, as it may take them a while to start making decent earnings.
Additionally, various top mining pools support the EthereumPoW chain. This list includes F2pool, 2Miners, Poolin, WoolyPooly, Antpool, Binance Pool, etc. F2pool and 2Miners together account for almost half of the network hashrate, which could become a problem in the future. Further power distribution in mining is imperative, but that’s easier said than done.
Volatility of ETHW value
The crucial aspect of mining EthereumPoW is the mining reward. Users earn ETHW tokens which they can trade on multiple exchanges including BingX, OKX, Digifinex, FTX and Coinsbit. However, it seems unlikely that ETHW will become a new core trading market on any exchange. As a result, the overall demand and attractiveness of this fork token are relatively low.
In terms of value for money, ETHW did not fare too well. The asset is down over 71% over the past month and is down 16.3% this week. Of course, all crypto markets are down, but these losses are due to other reasons. Admittedly, the ETHW follows the general market trend. However, it is evident that the supply is greater than the demand and miners continue to sell on the exchanges. That means its $850 million market cap won’t last long unless something changes.
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