Ethereum Classic’s [ETC] hash rate grew substantially in the last three months. This was an expected outcome as Ethereum [ETH] shifts to Proof of Stake (PoS). Hence, many miners have opted to shift to ETC mining.
A recent Binance announcement highlights more in store for ETC’s hash rate growth and exciting times ahead. The announcement revealed Binance’s plans to roll out a new ETC mining pool which will reportedly have no mining fees. One of the conditions of the announcement is that Binance has the right to amend related promotions. This suggests that it might introduce mining fees in the future.
Many miners exiting ETH mining might find Binance’s ETC mining pool more appealing than other available options. Nevertheless, the announcement underscores one of the major benefits that ETC is enjoying from ETH’s transition to POS.
ETC’s POW hash rate grew from as low as 17.742 TH/S to above 43 TH/S in the last three months. It attributes this growth to POW miners transitioning from ETH POW mining.
The zero-fee Binance ETC mining pool will contribute to a higher hash rate. Such an outcome will subsequently improve ETC’s security and transaction speeds. One of the potential benefits is that it can potentially lead to it being more attractive to projects that prefer POW networks.
An unexpected growth boost?
ETC holders would benefit from an inflow of more demand and network utility. The increased hash rate and potential for more utility may promote more price speculation and thus fuel retail demand. One of the potential downsides is a diminishing profit margin as the number of miners grows.
ETC has already demonstrated strong price action in the last few weeks as the network continues gaining visibility from the merge. The cryptocurrency managed a 34% rally in the first week of September. It has also demonstrated strong demand every time it experiences a major price drop.
At press time, ETC was exchanging hands at $38.42. The altcoin’s Relative Strength Index (RSI) stood above the neutral 50 line. The Awesome Oscillator (AO) too flashed green but below the zero line.
The strong social volume it has been receiving, combined with the hash rate growth have so far turned out to be unique metrics driving ETC’s demand. ETC might thus be in for a period of robust growth ahead.