The countdown is on for The Merge’s move to the Proof of Stake version of the Ethereum blockchain. An unprecedented historical mutation that fuels many speculations about his cryptocurrency ETHbut also ofa possible ETHPow fork. The latter is still quite theoretical and possibly carried out by miners in search of blocks to process in order to maintain their income. A fork that would result in the creation of an ETHW cryptocurrency. But what will be its actual value?
Some see in the mutation of the Ethereum blockchain to PoS the promise of an explosion of its cryptocurrency ETH. But also the opportunity of an airdrop (at a ratio of 1:1) from its ETHW counterpart, in the case of the creation – or rather the maintenance – of a Proof of Work version by its current miners. A gift of very questionable usefulness, but above all the amount of which may not even be worth looking into. Because current estimates give a price of $25 for this ETHW cryptocurrency, i.e. 80% drop since its listing. And it could be even worse…
ETHW – A falling price before it even existed
At the time of its theoretical listing – because it does not yet exist – the ETHW cryptocurrency had reached a peak very close to $200. But that surge was short-lived, as at the time of writing its price is down to just $27.65…and in a very clear downward trend. A blow for this official representative of the possible fork of the Ethereum blockchain, proposed by the miner Chandler Guo. This as a final affront – or obstacle – to the serene implementation of its Proof of Stake version scheduled for next week. And one of the main specificities of which is to put its miners on technical unemployment.
But the hard fork proposed by Chandler Guo would allow them, and this is almost its only “utility”, to continue to mine the ETHW cryptocurrency on the ETHPOw blockchain. In any case for miners who have not yet decided to migrate to alternatives like Ethereum Classic (ETC), whose operating model is identical to Ethereum in its Proof of Work version. A fork that would also allow ETH holders – historical version – to receive an airdrop of ETHW tokens. But what is the point if its value is barely 1.6% of that of Ethereum?
ETHW – No more than $18 when launched
Because according to data from a report published on September 1 by the crypto investment company Paradigm, the unit price of ETHW should not exceed $18 at the time of the launch of the ETHPow blockchain. That is to say with a drop of 90% below its historic high of last August 9 at $198. All this following a calculation made between the spot market, which includes the PoS and PoW versions of Ethereum, and the futures market which only takes the PoS version into account.
” If the merger occurs, traders will only receive ETH PoW if they hold spot (spot) ETH and will not receive anything if they hold ETH derivatives. Most of the major exchanges have come out and said their futures/perp contract will refer to an ETH PoS (FTX/Deribit for example) since the intention of the future is to target “real” ETH which is likely to be PoS . From this, we can deduce how much the ETH PoW market estimates will be worth by simply looking at the spot-future basis, since spot = PoS + PoW, while future is only PoS. »
As saying that the interest of buying an ETH at $1600 to receive $18 in return is ridiculous. Especially considering the gas fees that this network applies most of the time as soon as its transaction volumes soar. An inventory that puts into perspective the ETHW token hunting party initiated by DeFi degenerates for some time. At point force some protocols to pause their ETH lending options waiting for the fateful date. But it’s only a matter of days now…
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Ethereum – The cryptocurrency ETHW collapses by -80% since its listing – CryptoActu
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