The Ethereum Proof of Work (ETHW) token had piggybacked off the popularity of the Ethereum Merge. In a bid to maintain the network in its original mechanism, developers had forked the Ethereum network,
creating their own token in the process. The ETHW had been launched after the Merge was completed and was airdropped to ETH holders. The digital asset then suffered massive declines just days after launch.
Ethereum Proof Of Work Recovers
The Ethereum Proof of Work (ETHW) token distribution had been ongoing for days after the Merge. The reason for this was exchanges needed more time to distribute the tokens to their customers who currently hold ETH on their balances. Binance was the most recent crypto exchange to complete its distribution, giving the digital asset a much-needed boost.
It was in the early hours of Tuesday when the largest crypto exchange in the world had completed its ETHW distribution. The crypto exchange had also opened deposits and withdrawals for the cryptocurrency, promptly increasing the demand for ETHW.
Following this, the price of ETHW had added more than 30% to its value in a matter of hours. 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 grows 30% in a single day | Source: ETHWUSD on TradingView.com
The rally has since leveled out, but the digital asset continues to lead the crypto market in terms of gains. It is currently number 1 on the Top Gainers list on Coinmarketcap, which lists the 24-hour gains for the digital asset at 33.64%.
ETHW Poised For More Gains?
Ethereum Proof of Work (ETHW) token might not be the most popular coin in the market currently, but it is definitely leaving its mark. Its value is helped by the fact that the tokens are being sent to ETH holders who have previously proven to hold their coins for a long time.
The token has also been creating support just under the $6 point, making this a possible bounce point for the cryptocurrency in the event of a downward correction. Additionally, there is more demand for the cryptocurrency now that it can be moved in and out of crypto exchange Binance.
ETHW’s all-time high also sits at $14, which took place in the bear market. If the growth of Ethereum Classic over the years is anything to go by, ETHW may go on to record massive gains over the years. However, as is typical for hard-forked tokens, they never quite do better than the original coins. In this case, ETHW will likely not reach the Ethereum levels anytime soon.
Featured image from Forkast, chart from TradingView.com
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