Created after a hard fork in 2016 for the most used blockchain, Ethereum Classic, has jumped more than 60% in the last week. According to price data on CoinMarketCap, ApeCoin has increased by around 70% over the same period. ETC also increased more than the rest of the top 100 coins by market cap.
So why did this old coin, which has lost its popularity, suddenly started to increase? There are various speculations in the market that ETC, currently the 26th largest cryptocurrency with a valuation of approximately $6.5 billion, will be the choice of Ethereum miners who are expected to complete the PoS transition in June.
Speculation that Ethereum miners will initiate a migration to Ethereum Classic is thought to be the reason behind the price increase.
Ethereum, on the other hand, continues to rise ahead of the update expected this year. The change, called a merge, will move Ethereum from a system called Proof of Work, where miners validate transactions using powerful computers, to a system where users' stakes perform the same function. The final test before the merge was launched started on March 15 and it appears to be running smoothly. With the transition to Proof of Stake taking place, Ethereum miners will soon need to move their existing expensive mining equipment elsewhere, and Ethereum Classic seems like the most likely chain that miners can migrate to.
Ethereum Classic developers recently published a post on their blog, “Welcome Ethereum Miners”. In the article, it was stated that after the Proof of Stake merger that Ethereum will switch to, miners who benefit from PoW mining will be deprived of it, but they can continue this mining in Ethereum Classic.
Let's remember how Ethereum Classic came out. In 2016, a significant amount of money was stolen from a DAO on Ethereum, and the Ethereum community hard forked, sort of reclaimed the transaction. Those who thought that this move was against the "immutable" philosophy of blockchains remained on the original Ethereum chain, and this chain was called Ethereum Classic.
Ethereum Classic has been subject to frequent 51% attacks recently due to the low hashrate on the network and its uneven distribution. The migration of Ethereum miners here means that the hashrate of ETC increases and the network becomes more secure. All these possibilities could be restoring investors' confidence in ETC and supporting the price increase.