Ethereum classic (ETC), a clone of Ethereum’s ether (ETH), led the cryptocurrency market’s July revival.
ETC is up 184% this month, while Polygon’s MATIC and Uniswap’s UNI are up 102% and 86%, respectively. At the time this was written, ether had gone up 60% and bitcoin (BTC) had gone up 20%. The value of cryptocurrencies rose to $1.14 trillion from $762.82 billion previous month. Analysts point to factors that are unique to each coin and the market risk reset.
ETC gets a boost from Ethereum’s merger.
Lucas Outumuro, head of research at IntoTheBlock, says “ETC is fueled by rumors that ETH miners may switch to ETC”. The “merge” will combine Ethereum’s proof-of-work blockchain with the Beacon Chain.
After September 19, Ethereum will become a proof-of-stake (PoS) chain, requiring validators to stake tokens to authenticate transactions for rewards. To verify PoW transactions, miners have to solve a math problem.
Ethereum miners must migrate to Ethereum Classic to use their equipment.
Sami Kasab of Messari says that the Ethereum mining network is made up of both ASICs and GPUs. “ASICs can only mine Ethereum (ETH) and not any other cryptocurrency. Ethereum Classic may be mined using an ETH ASIC because of its hashing algorithm.”
AntPool, a company owned by Bitmain, gave $10 million to Ethereum Classic. The performance of ETC, UNI, and MATIC in July is also shown on CoinDesk’s UnknownChart.
The rise in ETC in July comes after other upgrades to Ethereum.
“With the Berlin upgrade to Ethereum in April 2021, ETC went up. Due to rumors of a merger, ETC is picking up speed.” FRNT Financial, a cryptocurrency company in Toronto, says that investors can use ETC as a hedge.
Early in the morning, ETC traded above $45, which was the first time in 3 1/2 months that it did so.
Polygon makes noise.
Polygon’s statements about working together and also growing help MATIC.
The scaling solution set aside $20 million for activities related to the Terra blockchain. Disney chose Polygon as one of six companies to take part in a program to help them grow. Polygon said it was making a zkEVM that would also cut transaction fees for Ethereum by 90%.
FRNT Financial says that zkEVM has gotten the ecosystem more excited.
By combining sidechains with Ethereum’s main blockchain, Polygon makes transactions faster and cheaper. Increasing the number of transactions per second is also what scaling means.
MATIC was close to $1 early on Friday, which was the best since May 9.
Prices went up at Uniswap.
UNI is not the first DeFi-related coin to gain value, but Uniswap’s “fee switch” transfers trading fees to UNI holders.
Ilan Solot of TagusCapital thinks UNI holders may get 10% of trading fees once the proposal is implemented. The owners of SUSHI and CRV tokens no longer get a share of the revenue. The 0.3% trading fee is for liquidity providers “UNI holders approved the scheme; next is execution. The Treasury’s trading costs are thought to be between $20,000 and $40,000 per day. This made UNI money.” Solot said this on Thursday.
After hitting a 3-1/2-month high of $9.84 on Thursday, UNI was also trading at $8.9.
