ethereum classic [ETC] The hash rate has increased significantly over the past three months. This was an expected result as Ethereum [ETH] Shift to Proof of Stake (PoS). Therefore, many miners have opted to move to ETC mining.
The recent Binance announcement highlights the increase in ETC’s hash rate and more in store for exciting times to come. The announcement shows that Binance is planning to launch a new ETC mining pool, which will reportedly have no mining fees. One of the terms of the announcement is that Binance has the right to amend related promotions. This suggests that it may introduce mining fees in the future.
Many miners looking to opt out of ETH mining may find Binance’s ETC mining pool more attractive than other available options. Nevertheless, this announcement underscores one of the major benefits that ETC is reaping from ETH’s transition to POS.
The POW hash rate of ETC has increased from at least 17.742 TH/S to 43 TH/S in the past three months. It attributes this growth to POW miners transitioning from ETH POW mining.
The zero-fee Binance ETC mining pool will contribute to the higher hash rate. Such an outcome would subsequently improve the security and transaction speed of ETC. One of the potential benefits is that it could potentially be more attractive to projects that prefer POW networks.
An unexpected growth boost?
ETC holders will benefit from increased demand and inflow of network utility. The increased hash rate and the potential for greater utility could lead to greater price speculation and thus boost retail demand. As the number of miners increases, one of the potential downsides is the reduction in profit margins.
ETC has already demonstrated strong price action over the past few weeks as the network continues to gain visibility from the merge. The cryptocurrency managed to rally 34% in the first week of September. Every time it experiences a major price drop, it has also demonstrated strong demand.
At press time, ETC was exchanging hands at $38.42. The relative strength index (RSI) of the altcoin remained above the neutral 50 line. The Awesome Oscillator (AO) was also glowing green but below the zero line.
The strong social volume it has achieved, coupled with hash rate growth, has become the unique metric driving the demand for ETC so far. Thus ETC could be in for a period of strong growth ahead.