Cryptocurrency the price of Ethereal Classic increases by 30% in just 24 hours, while ether increases by 16%, what is causing the increase?

The price of the cryptocurrency ether, on the other hand, increased by more than 16 percent during the past day.

Advertisement

According to CoinGecko, the price of Ethereum Classic increased by over 30% to $33 in the previous day, while Ether increased by over 16% to $1,655. This is due to the long-awaited software upgrade for Ethereum, which has driven up the values of the respective cryptocurrencies in recent days.

A hard fork in the Ethereum software in 2016 resulted in the creation of Ethereum Classic. The price of ether has also increased as the cryptocurrency market anticipates the blockchain’s largest transformation, known as the Merge, which may occur in September after being delayed for a number of years.

The Merge will transition Ethereum from its present Proof of Work system, which employs powerful computers to order transactions, to a system called Proof of Stake, in which staked Ether tokens would order transactions.

Advertisement

The existing Ethereum Mainnet and the Beacon Chain proof-of-stake network will soon converge. This will complete Ethereum’s shift to proof-of-stake and signal the end of proof-of-work. This paves the way for later scaling improvements like sharding. According to its website, The Merge will lower Ethereum’s energy use by around 99.95%.

The offshoot’s performance surged after co-founder of the Ethereum blockchain Vitalik Buterin brought it up at the annual Ethereum Community Conference, or EthCC, on July 21 in Paris.

The 20th largest cryptocurrency by market value, Ethereum Classic has increased by about 42% during the past seven days. The native coin of Ethereum Classic is called ETC. According to CoinDesk, Ethereum’s blockchain broke into two distinct chains in 2016 as a result of a dispute among its community members.

Buterin stated that once the Merge upgrade is complete, the Ether network will be 55% complete. Tim Beiko, a member of the Ethereum Foundation, proposed September 19 as the tentative launch date for the Merge earlier this month.

The Ethereum migration, which is anticipated to eliminate income for up to one million people, may benefit Ethereum Classic, which still relies on the Proof-of-Work mechanism, the most. Ethereum Classic may be used by miners who are seeking for a platform for their expensive mining hardware.

The mining pool associated with the industry behemoth Bitmain Technologies Ltd., AntPool, announced that it has invested $10 million to assist the original Ethereum, according to Bloomberg. This has helped the original Ethereum gain more attention.