In the ever-evolving world of cryptocurrencies, the story of ETHPOW, a fork of Ethereum, is one that encapsulates the turbulence and challenges faced by altcoins striving for success. Launched on September 15, 2022, as Ethereum’s mainnet transitioned to a proof-of-stake (PoS) consensus mechanism, ETHPOW took a unique path by continuing to embrace the proof-of-work (PoW) model. The idea was bold, but as we delve into the state of ETHPOW today, it raises the question: is this cryptocurrency on the brink of irrelevance?

The Rise and Fall of ETHPOW’s TVL

ETHPOW’s journey began with promise, marked by a peak in its Total Value Locked (TVL) in the decentralized finance (DeFi) sector at a noteworthy $6.8 million on October 28, 2022. However, the subsequent months witnessed a stark decline. According to DefiLlama, the most recent data paints a grim picture, with ETHPOW’s TVL plummeting to a mere $110,771, signifying a staggering 98% decrease in the past year.

Such a precipitous fall prompts questions about the future of ETHPOW. Can it regain its lost ground, or is it destined for obscurity in a competitive crypto landscape?

The Leading DeFi Protocol on ETHPOW

At the time of writing, the DeFi protocol with the highest TVL on ETHPOW is UniWswap, boasting a TVL of $66,646. However, this figure is a far cry from the impressive $5 million recorded in October 2022. This downward trend is not unique to UniWswap; 14 out of the 15 protocols hosted on the ETHPOW chain have experienced TVL reductions, with one even witnessing a dramatic 10% decline in just one week.

Mining Woes: A Decline in Hashrate

Mining plays a pivotal role in the security and operation of PoW blockchains. ETHPOW, like its predecessor Ethereum, initially relied on miners to validate transactions and secure the network. However, data from 2Miners.com has revealed a disconcerting trend in ETHPOW’s hashrate. At the time of writing, the chain’s hashrate stands at 9.32 TH/s, indicating a 45% drop since the beginning of the year and an astonishing 86% decrease since its launch in September 2022.

The decline in mining activity has naturally led to a corresponding decrease in the network’s mining difficulty. The network difficulty now hovers at 125.87 T, reflecting an 84% reduction since the first block was mined on the ETHPOW network. This decline has far-reaching implications, potentially impacting the network’s security, decentralization, and profitability, which in turn may deter users and developers.

User Activity and Coin Value

While the statistics paint a grim picture for ETHPOW, it’s essential to examine user activity. According to data from OKLink, ETHPOW experienced an influx of new addresses in the past 24 hours, with a staggering 99,000 new addresses created, pushing the total number of addresses on the chain to 374.71 million.

However, these new addresses may not tell the entire story. At the moment, only a mere 0.053% of these addresses are active on the ETHPOW chain. This low level of engagement suggests a struggle to retain user interest and activity, which is vital for the long-term viability of any blockchain.

As for ETHPOW’s native coin, ETHW, its value paints a grim tale as well. Trading at just $1.21 at the time of writing, ETHW has seen an 83% decline in value over the past year, according to data from CoinMarketCap.

The Road Ahead for ETHPOW

ETHPOW’s challenges are evident, but it’s important to consider the broader context of the cryptocurrency market. The landscape is incredibly competitive, and only a select few altcoins manage to sustain long-term growth and adoption. While ETHPOW’s unique choice to stick with PoW amidst a sea of PoS blockchains was daring, it hasn’t translated into lasting success.

The decline in TVL, mining activity, and coin value are all significant indicators of the struggles faced by ETHPOW. The blockchain may not be in immediate danger of disappearing, but its future hangs in the balance. To remain relevant, ETHPOW must adapt to the changing crypto landscape and find ways to reinvigorate user and developer interest.

In Conclusion

The story of ETHPOW is a sobering reminder of the challenges faced by cryptocurrencies striving to make a mark in a dynamic and competitive industry. The declining TVL, mining activity, and coin value underscore the hurdles this Ethereum fork faces. Whether it can rejuvenate itself and carve a niche for its PoW model in a PoS-dominated world remains to be seen. In the volatile world of cryptocurrencies, one thing is certain: adaptability and resilience are the keys to survival. Time will tell whether ETHPOW possesses these qualities.