The price of Ethereum Classic (ETC) may benefit from Ethereum switching to proof-of-stake, according to rumors that are already proving to be true.
Ethereum Classic (ETC) has been beating its arch-rival Ethereum’s native token Ether (ETH) throughout the current crypto market recovery with the ETC/ETH pairs hitting 10-month highs.
On July 28, ETC’s price increased to $35.39 after hitting a low of $13.35 earlier in the same month. The token has already increased by 142% in just two weeks. ETH’s price, in contrast, has increased by 52 percent in terms of U.S. dollars.
Ethereum’s recovery has been one of the most rapid among the top cryptocurrencies. This is largely because of the buzz surrounding a potential network upgrade in September.
Ether started to rally and led the cryptocurrency market recovery after Tim Beiko of the Ethereum Foundation forecasted that the so-called merge, or move to proof-of-stake, is likely to go live in the middle of September.
The long-awaited architectural upgrade, dubbed “the Merge,” will change the Ethereum blockchain network’s consensus process from proof-of-work (PoW) to proof-of-stake (PoS).
Stakers will take the place of miners as a result of the switch to a new consensus mechanism. The PoS move will force current Ethereum miners to use PoW networks because of this.
It should come as no surprise that Ethereum Classic is the most similar to Ethereum in terms of network architecture and compatibility due to the fact that Ethereum Classic is the heritage chain that was split from Ethereum after a contentious hard fork in July 2016.
Thus, one of the primary drivers of ETC’s recent price increase is likely speculation that Ethereum Classic would overtake Ethereum as the preferred cryptocurrency for miners switching from Ethereum.