As attention fully diverts from the Ethereum fork, the total value locked (TVL) on the Ethereum proof-of-work (ETHPOW) network has dropped to its lowest point since its inception.
Following the switch to a proof-of-stake (PoS) consensus method on the Ethereum mainnet, ETHPOW is an Ethereum split that became live on September 15, 2022. ETHPOW kept using a proof-of-work consensus method after the switch.
Nevertheless, since its decentralised finance (DeFi) TVL peaked at $6.8 million on October 28, 2022, it has slowly declined due to its inability to achieve the anticipated traction.
ETHPOW’s Fate Uncertain: DeFi TVL Dips Below $150,000,ETHPOW’s Fate Uncertain: DeFi TVL Dips Below $150,000
At the time of publication, ETHPOW’s TVL was less than $150,000, according to DefiLlama. The network’s TVL has dropped by 98% in the past year to $110,771.
About to die?
As of the time of writing, UniWswap was the DeFi protocol on ETHPOW with the highest TVL, rating at $66,646. The TVL for the project was more over $5 million as of October 2022.
Fourteen of the fifteen protocols in the chain had TVL declines in the previous week alone; one protocol saw a decline as low as 10%.
Data from 2Miners.com about network mining showed a steady drop in ETHPOW’s hashrate. The chain’s hashrate, which was 9.32 TH/s at the time of publication, has decreased by 86% since its inception date and by 45% since the year started.
The decrease in EthereumPOW mining activity was anticipated to result in a corresponding decrease in the mining difficulty of the chain. Since the network’s first block was mined in September 2022, the difficulty of the network has decreased by 84%, to 125.87 T at the time of publication.
A network may become less lucrative, centralised, and secure if its hash rate and network difficulty continue to drop. The network’s total worth may decrease as a result of users and developers finding it less appealing.
ETHPOW’s Fate Uncertain: DeFi TVL Dips Below $150,000,ETHPOW’s Fate Uncertain: DeFi TVL Dips Below $150,000,ETHPOW’s Fate Uncertain: DeFi TVL Dips Below $150,000