Prior to the merger, there was reasonable social activity around proof-of-work blockchain networks. On the other side, a White House report on energy use indicated that the US government should reduce mining activities dependent on excessive energy use.
The report suggests limiting or banning cryptocurrency mining, especially the energy-inefficient method. The White House mentioned its restrictions on energy-intensive consensus mechanisms like the proof-of-work method.
Ethereum miners are migrating to these cryptocurrencies
After Ethereum switched to the new consensus mechanism, miners migrated to a few other projects. Miners largely depend on just a few blockchains – Ethereum Classic, Ergo, and Ravencoin. According to a report by Forbes, these projects are reasonably better options considering mining capabilities and rewards. Therefore, on the day the merger was successfully completed, these cryptocurrencies experienced a huge spike in the hash rate. Hash rate is the total computing power used by cryptocurrencies to mine and process transactions. This indicates the speed of mining on the blockchain network.
Miners’ profits plunge
Hashrates on Ethereum Classic, Ravencoin, and Ergo jumped 124%, 98%, and 146% respectively after the completion of the Ethereum merger on September 17. However, the mining capabilities of these networks only support a fraction of what Ethereum offered before the merger. While the hash rate for Ethereum before the merger was around 867 (TH/s), these three networks only offer 28%. Moreover, with the increase in traffic from miners on these networks, profits have declined from pre-merger levels.
Meanwhile, the price of Ethereum Classic (ETC) plunged after the merger and has failed to recover since. ETC price stands at $34.21, down 1.13% in the last 24 hours, according to CoinMarketCap. The same goes for Ethereum (ETH) which continues to fluctuate in post-merger levels. The price of ETH stands at $1,454.58, up 0.73% in the past 24 hours.
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