Ethereum Proof Of Work (ETHW token) had piggybacked on the success of Ethereum Merge. Developers had forked Ethereum in an effort to preserve the original network mechanism.
The process allows them to create their own token. After completion of the Merge, the ETHW was released and distributed to ETH holders. Within days of launch, the digital asset experienced a massive drop in value.
Ethereum Proof of Work Recovery
Since the Merge, Ethereum Proof Of Work (ETHW), token distribution has been going on for several days. Exchanges took longer to give tokens to holders of ETH to their customers. Binance, the latest crypto exchange to distribute the tokens, gave the digital asset an important boost.
In the early hours Tuesday morning, the biggest crypto exchange had finished its distribution of Ethereum W. It also allowed withdrawals and deposits for cryptocurrency. This immediately increased demand for ETHW.
In a matter hours, the price for ETHW increased by more than 30%. It broke out of the $5 range, which it had been trending in for the last couple of days, and barreled above $7 at the rally’s peak.
ETHW surges by 30% in a Single Day | Source: ETHWUSD on TradingView.com
Although the rally is now at an end, the gains for the digital asset continue to be the most impressive in the market. It currently ranks at the top of Coinmarketcap’s Top Gainers, with 33.64% daily gains.
ETHW Poised for More Gains
Although Ethereum Proof of Work token (ETHW), might not be the most widely traded coin on the market, it has made a significant impact. Because tokens can be sent only to ETH holders with a history of holding their coins for a considerable time, it has a high value.
Also, support has been created at $6 for the token. This is an opportunity to make the currency a bounce point in the case of a correction. The cryptocurrency is in greater demand because it can now be traded on Binance.
ETHW’s all-time high also sits at $14, which took place in the bear market. If Ethereum Classic’s steady growth is any guide, ETHW will likely continue its upward trend. As is the case with all hard-forked tokens they don’t perform better than their original counterparts. In this instance, ETHW won’t reach Ethereum level anytime soon.
Featured Image from Forkast. Chart by TradingView.com
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