Data from Coingecko indicates a rise in the price of Ravencoin (RVN), with the cryptocurrency moving against the general sentiment in the market over the past month. The rally in the price of this token coincides with the upcoming Ethereum “merge” and seems to be directly related to this event.
At the time of writing, Ravencoin (RVN) is trading at $0.07 with 15% and 91% gains respectively over the past 24 hours and 7 days. Over the past 2 weeks, the cryptocurrency has registered a massive increase with a 150% gain and a 95% gain over the past 30 days.
Addressing the rally in the price of Ravencoin (RVN)
As Ethereum prepares for “The Merge,” the event that will complete its migration to Proof-of-Stake (PoS) consensus, more attention is drawn towards projects such as Ravencoin, Ethereum Classic, and LidoDAO. These cryptocurrencies have been some of the best performing assets.
LidoDAO provides a low-cost, low-difficulty platform for users to participate in the new Ethereum consensus model while Ravecoin and Ethereum Classic allow miners to continue their operations. The new Ethereum POS consensus will lock miners out of a mechanism called “difficulty bombs”.
Thus, miners are migrating to cryptocurrencies by using Proof-of-Work (PoW) consensus which allows them to remain profitable. As a result, the hash rates of Ethereum Classic and Ravencoin are rallying following the price trajectory.
According to data provided by Minerstat, RVN’s network hashrate has increased by more than two times since the beginning of September 2022, following a sideways trend over the year. This metric stands at 7.5 Tera Hashes Per Second (TH/s), as seen in the chart below. Hash rate and RVN value appear to be correlated.
The Ravencoin community has been cautious about celebrating this rally as it has also affected the difficulty of the network and possibly attracted speculators. In this sense, the official Twitter handle of the project reappeared message Originally published on August 2021, when the crypto market was still trending upwards.
one more reminder
be careful in investing
https://t.co/G7gXdtD1ti
— Project Raven / RVN / Ravencoin (@Ravencoin) September 14, 2022
Is this Ravencoin rally permanent?
Additional data provided by Content Indicators shows that RVN’s price rally has been supported by investors with bid orders of around $2,000, and more recently by investors with bid orders of around $100,000. The latter should continue to support the price to maintain the bullish momentum.
If Ethereum completes its transition to a PoS consensus, it seems logical that RVN and other PoW cryptocurrencies will gain traction. However, the competition between the general candidates will be fierce, and any potential Ethereum fork token is trying to take advantage of the native consensus algorithm.