Introduction
One month after Ethereum's historic transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the blockchain ecosystem continues to experience ripple effects. The Merge rendered Ethereum's $5 billion mining hardware market and 850TH/s hashpower obsolete overnight, forcing miners to migrate or exit. This analysis examines where Ethereum's displaced hashpower migrated, which projects benefited most, and the sustainability of these new mining ecosystems.
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Key PoW Chains Absorbing Ethereum's Hashpower
1. Ethereum Classic (ETC)
Current Hashrate: 146.93TH/s
Peak Growth: 320.9% increase post-Merge
ETH Hashpower Absorption: ~21%
As Ethereum's original chain preserving PoW consensus, ETC saw the largest influx. Hashpower surged from 55.67TH/s to 234.35TH/s before stabilizing at current levels.
2. EthereumPoW (ETHW)
Current Hashrate: 36.79TH/s
Hashpower Change: 46% decline from initial 68.17TH/s
ETH Absorption: ~4.32%
This ETH fork modified difficulty parameters to accommodate miners but lacks ecosystem support, resulting in significant hashpower attrition.
3. Ravencoin (RVN)
Current Hashrate: 14.9TH/s
Peak Growth: 675% surge during Merge
ETH Absorption: ~2.06%
The asset-focused blockchain saw temporary price and hashrate spikes but couldn't sustain peak levels.
4. Ergo (ERG)
Current Hashrate: 58.8TH/s
Volatility: 10x growth followed by 88% drop
ETH Absorption: ~18.8%
Ergo's smart contract platform experienced dramatic hashpower fluctuations before partial stabilization.
5. Conflux (CFX)
Current Hashrate: 2.97TH/s
Stability: 329% growth without major outflows
ETH Absorption: 0.26%
This Chinese public chain's proposal to adopt Ethash mining proved moderately successful.
Market-Wide Observations
Timing Patterns:
- Major hashpower migration began 1-3 days pre-Merge
- All chains hit peak hashrate on Merge day
- Significant outflows occurred 3-5 days post-Merge
Economic Realities:
- No alternative provided Ethereum-level mining profitability
- Token prices and hashrates showed strong correlation
- Approximately 60% of ETH's hashpower exited mining entirely
Hardware Impact:
- 17 million GPUs (3060-tier) formerly mining ETH
- Ongoing bear market extends GPU price depression cycle
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FAQ: Ethereum Merge Hashpower Migration
Q: Which chain absorbed most Ethereum miners?
A: Ethereum Classic (ETC) captured ~21% of displaced hashpower – the highest among alternatives.
Q: Why couldn't ETHW sustain its initial hashrate?
A: Lack of ecosystem support (stablecoins, DeFi protocols) made mining less profitable long-term.
Q: How much ETH hashpower completely left mining?
A: Roughly 60% (~250TH/s) exited, equivalent to millions of GPUs entering secondary markets.
Q: Are any small chains benefiting unexpectedly?
A: Chains like Neoxa (6x growth) saw spikes but negligible overall hashpower absorption.
Q: What's the future for PoW mining post-Merge?
A: With BTC as exception, PoW chains face increasing challenges against scalable POS alternatives.
Conclusion
The post-Merge hashpower redistribution reveals:
- ETC emerged as primary beneficiary but couldn't retain peak capacity
- Most alternatives proved economically unsustainable for former ETH miners
- GPU market faces prolonged downturn from excess supply
- PoW's competitive position weakens against POS alternatives
This transition marks a paradigm shift in crypto mining economics, with lasting implications for hardware markets, chain security models, and miner profitability calculations.