By Franklin Smith
Ethereum Classic risks 51% PoW (proof-of-stake) finality fraud. That’s ETC’s present stance according to its latest ecosystem risk evaluation. Nevertheless, the danger didn’t just appear as it remains a probable result of the Ethereum Classic blockchain the as the ETH Merge draws near.
Markets expect effects on ETC as Ethereum plans to shift to PoS (Proof-of-Stake) in September. This prediction, if it occurs, won’t be the initial Ethereum Classic to ensure a 51% attack. A similar case happened in August 2020. Meanwhile, the incident triggered a block reward delay, negatively affecting the hashrate.
Now, Ethereum Classic might follow that path. Even cryptocurrency developer Steven Lohya suggests that’s a possibility. Nevertheless, ETC appears to ignore this possible danger (considering the present price action).
Isn’t My Business
ETC appears more focused on investor profit despite the attack dangers. While publishing this post, Coinmarketcap data indicated that Ethereum Classic was 11.7% against USDT. ETC was the only token in the top 20 crypto-list with a double-digit surge within the previous 24 hours. While publishing this post, it traded at $36.88.
That could be optimistic for investors after the hashrate hit another ATH (all-time high). After touching 37.34 TH/s, Ethereum Classic stretched to 42.52 TH/s (2Miners data). The charts show the altcoin was steady on its present momentum. The DMI (Directional Movement Index) supported this position.
The positive Directional Movement Index retained a solid spot beyond the –DMI at 26.12, whereas the latter read 16.90. Nevertheless, there’re signals that Ethereum Classic might not sustain the strength as ADX (Average Directional Index) maintained a downside direction.
On-Chain Analysis
Santiment’s on-chain data showed Ethereum Classic noted increased volume. The analytic platform revealed a 10.08% volume uptick, with a $1.12 billion flow since August 24. Furthermore, development activity seemed to hike.
ETH network’s development activity stood at 0.02 by August 21. While publishing this news, the figure stood at 0.09, indicating that developments progressed as the markets awaited the Merge.
What are your opinions about the above content? Moreover, what are your anticipations as we gear towards the ETH Merge? Feel free to share your views in the comment section below.
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