Although the opinions on EthereumPoW remain divided, the alternative chain continues to forge ahead. Moreover, it is building some decent DeFi momentum, which is somewhat surprising. Unfortunately, that hasn’t kept the ETHW price afloat, but things can still turn around.
EthereumPoW x DeFi
When a group of miners ignored The Merge, there were concerns over this approach. Continuing to mint ETH would not be possible once the network switched to proof-of-stake. So instead, the team forked the Ethereum chain and ignored the PoS transition. It creates a home for the many ETH miners that would otherwise be displaced.
Although those miners could opt for Ethereum Classic mining, that wouldn’t be necessarily viable. That network cannot properly sustain an influx of thousands of miners for more extended periods. Even so, establishing EthereumPoW may not be the optimal idea either. As miners’ earnings look a tad bleak, time will tell how that will pan out.
One intriguing development is how decentralized finance gains hold on EthereumPoW. Although $3.66 million in TVL is not spectacular, it remains surprising. Moreover, this value continues to rise virtually every day. Surpassing $5 million in Total Value Locked is not impossible, although it may not remain in place for too long.
With 12 DeFi protocols on the network, things look good. However, ten of the twelve are DEXes, with the other two spanning yield farming and a prediction market. Seeing such a DEX dominance is not abnormal, but it isn’t a sign of long-term health either. LFGSwap represents almost 53% of the combined TVL, followed by UniWswap and PowerSwap. Many people are curious about where things might head next for DeFi on EthereumPoW.
EthereumPoW Hashrate Looks Healthy
Despite conflicting opinions on ETHW, miners see merit in exploring this chain. The network has over 43.7 terahash per second in mining power. That may not seem like much, but it is evident many former Ethereum miners now try to pay off their rigs with ETHW. They will need all the luck and help they can get, though, as it may take a while to put together decent earnings.
Additionally, various top mining pools support the EthereumPoW chain. That list includes F2pool, 2Miners, Poolin, WoolyPooly, Antpool, Binance Pool, etc. F2pool and 2Miners combine for nearly half of the network hashrate, which may become a future problem. Further mining power distribution is essential, but that is easier said than done.
ETHW Value Volatility
The crucial aspect of mining EthereumPoW is the mining reward. Users earn ETHW tokens, which they can trade across multiple exchanges, including BingX, OKX, Digifinex, FTX, and Coinsbit. It seems unlikely ETHW will become a new core trading market on any exchange, though. As a result, the overall demand and appeal of this fork token are relatively low.
Price performance-wise, ETHW hasn’t done too well. The asset is down by over 71% in the past month and lost 16.3% this week. Of course, all crypto markets are bearish, but these losses have other reasons. Granted, ETHW follows the overall market trend. However, it is evident there is more supply than demand, and miners continue to dump on exchanges. That means the $850 million market cap will not hold for long unless something changes.