Clones of Bitcoin and Ethereum are rising on the market rebound

Key takeaway

  • The Bitcoin and Ethereum forks that first gained ground around the 2017 cryptocurrency market cycle are among the best-performing cryptocurrencies in today’s market rally.
  • Ethereum Classic, the original Ethereum chain that forked in 2016, increased by 25.6%.
  • Bitcoin Gold, Bitcoin Cash, and Bitcoin SV also significantly outperformed their much larger competitors.

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Cryptocurrencies surged across the board on Thursday, with the total cryptocurrency market gaining 7.1% on the day. The old forked coins of industry leaders are leading the way.

Bitcoin and Ethereum Forks Lead Rally

Despite strong interest rate hikes and continuing fears that the US has entered a recession, the cryptocurrency market is recovering today.

Global cryptocurrency market capitalization increased 7.1% today, with Bitcoin and Ethereum forks among the top performers. Ethereum Classic, the original Ethereum chain that forked in the DAO hacking fallout in 2016, significantly outperformed Ethereum in the rally. According to data from CoinGecko, the Ethereum Classic ETC is changing hands at $ 33.46 after rising 22.9% on the day, while Ethereum is up 11.2%.

One reason for the Ethereum Classic surge could be Ethereum’s imminent transition to the Proof-of-Stake, otherwise known as the “union”. The expected update is expected to be released in mid-September and Ethereum’s mining difficulty increases as the date approaches. This makes it less profitable for miners to maintain the network. The merger will also make mining hardware redundant as Ethereum will rely on validators rather than miners to verify transactions. As a result, Ethereum miners have slowly moved on to mining Ethereum Classic, creating a perceived demand for its ETC coin. The “original Ethereum” also gained popularity after AntPool, one of the largest cryptocurrency mining pools, announced on Wednesday a $ 10 million investment to support its ecosystem.

Several 2017-era Bitcoin forks that rose to prominence during the 2017 cryptocurrency market rally saw price action similar to that of Ethereum Classic. Bitcoin Gold’s BTG surpassed $ 26.78 after gaining 22% today, Bitcoin Cash’s BCH hit $ 144.10 after surging 22.3%, and Bitcoin SV’s BSV hit $ 144.10. $ 61.41 after a 13.3% increase. Bitcoin, which has a larger market cap than all of its forks combined, rose 8% over the same period. While no apparent fundamental catalyst fueled the rally, miners’ growing interest in older Proof-of-Work coins ahead of the merger could be a factor.

The cryptocurrency market has seen increased volatility in both directions over the past week, mainly due to drained liquidity and the impact of deteriorating macroeconomic conditions such as sharply rising interest rates and declining economic growth on assets. risk and capital markets. After today’s surge, the global cryptocurrency market capitalization is around $ 1.1 trillion, about 65% lower than its peak in November 2021.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

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