The countdown is underway for The Merge to migrate to a proof-of-stake version of the Ethereum blockchain. An unprecedented historical change that fuels a lot of speculation about the ETH cryptocurrency, as well as a possible fork of ETHPow. The latter is still quite theoretical and is possibly carried out by miners looking for blocks to process in order to keep their income. A fork that will lead to the creation of the ETHW cryptocurrency. But what will be its real value?
Some see the PoS mutation of the Ethereum blockchain as a promise to explode its ETH cryptocurrency. As well as the possibility of an airdrop (at a ratio of 1:1) from its counterpart ETHW, in the event of the creation – or rather maintenance – of the Proof of Work version by its current miners. A gift with very dubious usefulness, but, above all, about the amount, which, perhaps, is not even worth thinking about. Because current valuations put the price of this ETHW cryptocurrency at $25, which is an 80% drop since it was listed. And it could have been worse…
ETHW – falling price before it even existed
At the time of its theoretical listing – because it doesn’t exist yet – the ETHW cryptocurrency has peaked very close to $200. But that surge was short-lived because at the time of this writing, its price is just $27.65…and in a very clear downtrend. A blow to this official representative of a possible fork of the Ethereum blockchain proposed by miner Chandler Guo. This is the latest insult – or obstacle – to the serene implementation of his version of Proof of Stake, scheduled for next week. And one of the main features of which is to put your miners on technical unemployment.
But the hard fork proposed by Chandler Guo would allow them, and this is almost its only “usefulness”, to continue to mine the ETHW cryptocurrency on the ETHPOw blockchain. At least for miners who have not yet decided to switch to alternatives such as Ethereum Classic (ETC), whose operating model is identical to Ethereum in the Proof of Work version. A fork that would also allow ETH holders – the historical version – to receive ETHW tokens in the form of an airdrop. But what’s the point if its value is only 1.6% of the value of Ethereum?
ETHW – no more than $18 at launch
Because according to data from a report published on September 1 by the crypto investment company Paradigm, the price per unit of ETHW should not exceed $18 at the time of the launch of the ETHPow blockchain. That is, with a drop of 90% below its all-time high on August 9 last year at $198. All this after a calculation made between the spot market, which includes the Ethereum PoS and PoW versions, and the futures market, which only considers the PoS version.
“If a merger occurs, traders will only receive ETH PoW if they hold ETH spot (spot) and will receive nothing if they hold ETH derivatives. Most major exchanges have stated that their futures/futures contracts will be ETH PoS (e.g. FTX/Deribit) as the intention going forward is to target “real” ETH, which will most likely be PoS. From this, we can infer how much the ETH PoW market will be worth just by looking at the spot-future basis, since spot = PoS + PoW and the future is only PoS. »
Suffice it to say that the interest in buying ETH at $1,600 and getting $18 in return is laughable. Especially given the gas fees that this network applies most of the time once its transaction volumes skyrocket. The inventory that gives a glimpse of the DeFi-initiated ETHW token hunt group is degenerating for a while. To the point of forcing some protocols to put their ETH lending options on hold pending the fateful date. But it’s just a matter of days…
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