While Bitcoin continued the upward trend it started in the second half of March, we followed that many altcoins had a good rise.
One of the altcoins that rose hard in this process was Ethereum Classic. Noting the rise in ETC, the largest Bitcoin and altcoin fund Grayscale has published an article on the reasons behind the rise.
Stating that ETC increased by 103% against the 13% rise in Bitcoin between March 13 and March 24, analysts stated that this sharp rise was related to the purchase of an expectation.
"The increased interest in ETC is due to an expectation that miners will pass their hash power to the Ethereum Classic network with Ethereum's transition to POS later this year."
In the article, it was stated that ETC is a good alternative for Ethereum miners, and the following statements were used;
“Once the consolidation takes place on the mainnet, Ethereum miners will no longer earn block rewards with their current setup and will need to find a place to contribute their processing power. Given that the Ethereum Classic network has a long-term commitment to Proof of Work and is a fork of Ethereum with very similar code The ETC network could be a good candidate to get Ethereum's hash power."
In the article, it was stated that although there is no serious miner transition to ETC for now, it has been concluded that this will happen over time.
It was stated that behind the rise in ETC, besides this expectation, the block reward halving event on April 15, 2022 was also effective. This event, which served to reduce the inflation rate of the protocol, has historically been reflected positively on the price.
Reminding that ETC has faced a 51% attack before, analysts stated that a possible increase in hashrate can restore confidence in the network.
“While ETC has suffered from 51% attacks in the past, increased hashrate means more network security, which can lead to greater trust in the network. Decentralized applications (dApps) built on top of the ETC network are currently infrequent, but increased network security is more on-chain Instead of switching to ETC mining, ETH miners may choose other non-crypto related networks or alternative income sources for their hardware, such as video encoding. As a result, low ETC inflation and ETH transition to POS may raise several positive scenarios for ETC"