ETC has added 184% this month, while scaling systemPolygon’s MATIC and decentralized exchange Uniswap’s UNI have gained 102% and 86% respectively, CoinDesk data show. Industry leader bitcoin (BTC) had added 20% and ether 60% at press time. The total crypto market capitalization has rebounded to $1.14 trillion from last month’s $762.82 billion low.
“ETC is being driven by speculation that ETH miners will go to ETC and potentially, there could be another hard fork benefitting them,” Lucas Outumuro, head of research at IntoTheBlock, said. The driver for the move is Ethereum’s impending Merge to shift from the network’s proof-of-work (PoW) blockchain to a proof-of-stake (PoS) blockchain. Ethereum’s Beacon Chain has been running since 2020 as part of that process.
“ETC’s April 2021 rally coincided with Ethereum’s Berlin upgrade. Similarly, ETC seems to be rallying on the back of expectations related to the Merge,” Toronto-based crypto platform FRNT Financial said in an email, adding that investors may see ETC as a hedge against potential difficulties in the change.
While UNI is not the only decentralized finance (DeFi)-associated token to rally, its outperformance may result from the Uniswap community’s decision to approve a “fee switch” proposal that directs a portion of trading fees to the UNI holders.
Once the proposal is implemented, about 10% of trading fees could go to UNI holders, according to Ilan Solot, a partner at crypto hedge fund TagusCapital. Currently, they do not get any share in the protocol’s revenue, contrary to SUSHI token and CRV token holders. The entire amount collected from the exchange’s 0.3% trading cost goes to liquidity providers.
This content was originally published here.