Why is the ETC Price Steady Despite Risk of Further 51% Attacks?
Despite suffering its second 51% in a week, and major exchanges disabling deposit, withdrawal, and some trading services, Ethereum Classic is up 2% over yesterday.
As a consequence of the ETCâ€™s miner capitulation, the estimated cost of executing a 51% attack targeting Ethereum Classic using hash power rented from NiceHash has fallen from $12,000 per hour as of yesterday to less than $4,000, according to Crypto51.
Despite this, the price has been unaffected by the apparent fragility of the network, with the crypto asset actually gaining more than 2% over the dollar since news of the second reorganization attack broke yesterday to currently trade for $7.21.
Exchanges report $800M in 24-hour ETC volumeÂ
24-hour trade volume is up roughly 10% from the level posted only a few days before the first 51% attack, with orders continuing to execute across most top exchanges, including Coinbase Pro, Binance, Okex, Bitfinex, and KuCoin.
ETC posts wishy-washy market signals
The strength of ETCâ€™s markets despite exchangeâ€™s having disabled wallet activity raises questions about whether algorithmic bots may be driving much of the current trade activity.
In 2019 a report published by Blockchain Transparency Institute estimated that Ethereum Classic was among the three-most wash-traded crypto assets â€” with more than 80% of volume having been flagged as suspicious.
Ethereum Classic miners capitulate
After hovering between roughly five and six terahashes per second (TH/s) through July, ETCâ€™s hash power dropped to approximately four TH/s over the past seven days after news of the initial 51% attack broke.
A second attack yesterday saw hash power spike up to 9 TH/s, before plummeting to less than 2.5 TH/s.
Ethereum Classic hash rate – Source: 2miners
Similarly, the hashing rate available for hire on NiceHash is now equal to more than triple the power needed to attack the network, while NiceHashâ€™s power equated to 132% of the power required to capture 51% ETCâ€™s hash rate.
Numerous mining pools also have disabled ETC payouts and encouraged miners to switch over to Ethereum (ETH) in response to the second attack.
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