Following Ethereum founder Vitalik Buterin's encouragement for Proof-of-Work (PoW) miners to transition to Ethereum Classic (ETC), Digital Currency Group (DCG) CEO Barry Silbert echoed this sentiment on August 6 via Twitter:
"We fully support ETH's move to PoS. Beyond ETC, we have no plans to support any ETH PoW forks. ETH miners should migrate their hashpower to ETC for long-term revenue maximization."
Surging Hashrate and Mining Activity
- ETC's hashrate skyrocketed from ~20 Th/s in July to 31.94 Th/s (a 50%+ increase), stabilizing at 30.06 Th/s at press time (2miners data).
- Top mining pools: ethermine.org, 2miners.com, hiveon.net, f2pool.com, and poolin.com (miningpoolstats).
Price Volatility and Analyst Skepticism
ETC briefly surged due to ETH's merger hype, but analysts remain cautious:
👉 Why ETC's rally may be short-lived
Messari's findings:
- ETH dominates 97% of GPU mining revenue ($24M daily), while ETC accounts for just **2%** ($700K daily).
- Post-merge, miners switching to ETC would spike mining difficulty, rendering many operations unprofitable unless ETC prices rise substantially.
- ETC's active addresses trail Cardano's, with stagnant transaction volumes since 2018 and minimal developer activity.
Key Challenges for ETC
- Economic Viability: ETC's $700K/day rewards pale against ETH's $24M.
- Network Activity: No meaningful growth in users or dApps.
- Hashrate Pressure: Increased competition could push smaller miners out.
Alternative Perspectives
Crypto KOL 0xAA argues:
"ETC can't absorb ETH's hashrate. A hard-forked ETH-PoW chain would hold more value, given Ethereum's richer ecosystem today."
FAQs
1. Why are miners being urged to switch to ETC?
ETH's transition to PoS leaves PoW miners seeking alternatives. ETC, as a PoW chain, is a logical destination—though profitability concerns persist.
2. What’s ETC’s current mining revenue vs. ETH?
ETH generates $24M daily; ETC just $700K. A 97% vs. 2% split in GPU mining earnings.
3. Could ETC’s price rise enough to support migrating miners?
Possible, but unlikely long-term without fundamental growth in network usage or adoption.
👉 Explore Ethereum Classic’s latest developments
Conclusion
While ETC offers a temporary haven for ETH miners, its limited economic activity and low rewards cast doubt on sustainability. The chain needs significant price appreciation or ecosystem growth to compete post-merge.