The Ethereum hard fork known as "The Merge" was recently completed, marking a pivotal transition in its mechanism. This merger is a crucial step in the ETH 2.0 upgrade, paving the way for the introduction of shard chains and the complete shift from Proof of Work (PoW) to Proof of Stake (PoS). Post-merge, Ethereum significantly reduces energy consumption while enhancing security, decentralization, and lowering inflation rates.
Despite these advancements, Ethereum's price dropped by 15.2% post-merge, contrary to bullish expectations. Before the merge, Ethereum traded near $1,800 but fell to $1,360 shortly after. Bitcoin also dipped below the $20,000 threshold, settling at $19,312.
Why did Ethereum's price decline post-merge?
Distributed Technology researcher Zhang Shigen explains:
- Early buyers who anticipated the merge as a catalyst had already driven prices up, leaving no new demand post-event.
- Miners, whose core interests were disrupted by the PoW-to-PoS transition, retaliated by selling off holdings.
- Macroeconomic factors, including U.S. regulatory scrutiny and inflation data, further pressured the market.
Notable Ethereum Forks
Ethereum has undergone several forks, some consensus-driven (e.g., London, Berlin) and others contentious, resulting in multiple blockchains like Ethereum Classic (ETC) and ETHW. Below, we analyze key forks:
1. ETC (Ethereum Classic)
- Origin: Born from the 2016 DAO hack, ETC resisted the rollback that created today’s Ethereum, upholding "immutable blockchain" ideals.
- Recent Performance: ETC fell 23.4% post-merge, now priced at $28.75.
2. EXP (Expanse)
- Launch: September 2015, aiming to build an advanced chain for identity/governance.
- Status: Minimal ecosystem activity today.
3. ETF (Ethereum Fog)
- Goal: Augment Ethereum’s storage/compute capabilities via "fog computing."
- Legacy: Gained brief attention during 2017’s fork hype.
4. ETZ (EtherZero)
- Innovation: Introduced masternodes and zero-fee smart contracts.
- Current State: Website offline since 2020.
5. ETHW (EthereumPoW)
- Post-Merge PoW Chain: Launched amidst technical issues (e.g., Chain ID conflicts, replay attacks).
- Price Volatility: Peaked at $33.10, then plunged 81.6% due to sell-offs. Now at $6.11.
Challenges:
- Lacks stablecoin/DeFi infrastructure (e.g., USDT, Chainlink).
- Weak consensus and security concerns deter adoption.
FAQs
Q1: Will ETHW survive long-term?
A: Unlikely without robust developer/miner support and ecosystem growth.
Q2: Why did ETC drop post-merge?
A: Reduced miner interest as PoS became dominant.
Q3: What’s the biggest hurdle for ETHW?
A: Competing with established Layer 1 chains while stabilizing its network.
Final Thoughts
Forks aim to improve scalability and costs, but their success hinges on community backing and utility. While ETC retains nostalgic appeal, ETHW’s future looks precarious without stronger fundamentals.