ETH forks underperforming ETH since mergeEthereum proof of work forks has seen losses extending 66% since launching five days ago.
Ether has not struggled in isolation, Ether forks have experienced severe headwinds, and both ETHW and Poloniex’s competitor fork EthereumFair (ETF) have seen more than two-thirds of their valuation slashed since launch.The poor performance of forks is no surprise. Forks will struggle to gain meaningful adoption and hold no significant economic DeFi activity. The selling pressure in ETHW and ETF is likely caused by Ether holders dumping their airdropped tokens.ETHW plunged as low as 80% from its listing on FTX. Since its low, ETHW has recovered slightly, suggesting that the airdrop selling pressure has stopped for now. Ethereum Classic has also underperformed versus ETH. Amid the merge, many miners migrated to ETC, leading ETC’s hashrate to peak at 300 TH/s. However, as the difficulty has increased in ETC, the hashrate in ETC has declined to 186 TH/s. The hashrate rally and plunge in ETC is best explained by looking at revenues. ETH used to yield miners $20m in revenue per day versus less than $1m in revenues generated from ETC. Thus long-term mining ETC is far from viable on the scale as ETH mining once was. ETC has declined 25% since the merge. In sum, all forks have underperformed Ethereum.
Source: Tradingview (FTX, Coinbase, Poloniex)