Data shows that Ethereum Proof-of-Work forks fell sharply in the days after the merger.
Ethereum PoW forks are down 66% in just five days
According to the latest weekly report from Arcane ResearchETH PoW forks have had very poor performance against ETH since the merger.
The much talked about event switched Ethereum to a Proof-of-Stake consensus mechanism, essentially obfuscating the use of miners on the network.
However, some communities that favored the old PoW-based system decided to fork as the merge approached.
These new forks still rely on mining to reach consensus on the network and thus naturally attracted stranded ETH miners.
Here’s a chart showing how some of the most popular forks (ETC, ETHW, and ETF) have compared against Ethereum over the past five days:
Looks like the worst performer out of these was ETF | Source: Arcane Research's The Weekly Update - Week 37, 2022
As you can see in the chart above, Ethereum has been struggling since the merger, registering around 17% negative returns.
PoW forks, however, were even worse. ETHW saw losses rise 66%, while ETF investors are even deeper in the red with their holdings falling more than 72% over the period.
The best performer in this group was Ethereum Classic, which fell “only” 25% in the last five days. This performance was much better than the other two forks, but still noticeably lower than ETH’s yield.
The report states that this was not something unforeseeable as the forks were expected to struggle to garner any meaningful adoption and see almost no significant DeFi activity.
The current selling pressure for these cryptocurrencies is likely coming from Ethereum owners selling their airdrops, according to the report.
ETC has seen a large amount of ETH miners connecting to the network, causing hashrate, and therefore difficulty, to explode for the coin.
Since Ethereum Classic miners’ earnings are less than $1 million per day, while for ETH it was more than $20 million, cryptocurrency mining is not sustainable on the same scale as ETH in the long term.
At the time of writing, the price of Ether is hovering around $19.1k, down 5% in the last seven days. Over the past month, the cryptocurrency has lost 10% in value.
The chart below shows the coin’s price movement over the last five days.
The value of the crypto seems to have failed to recover from the plunge a few days back | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research