The Ethereum network's long-anticipated "Merge" — a pivotal hard fork that transitioned the blockchain from Proof-of-Work (PoW) to Proof-of-Stake (PoS) — has officially marked the end of energy-intensive mining on the platform. This upgrade, a core component of the ETH2.0 roadmap, promises enhanced security, reduced inflation, and a dramatic drop in energy consumption by over 99%. However, despite these technological advancements, the market response has been unexpectedly bearish.
In the week following the Merge, Ethereum’s price dropped by 15.2%, falling from nearly $1800 to around $1360. Bitcoin also declined, slipping below the critical $20,000 mark. This raises an important question: Why did Ethereum’s price fall after a successful upgrade?
According to Zhang Shigen, a researcher at Fenbu Tech, "Market prices reflect expectations. Many investors who viewed the Merge as bullish had already bought in beforehand. Once the event passed without new catalysts, buying pressure faded. Meanwhile, displaced miners — whose revenue model was dismantled by the shift to PoS — began selling off their holdings, contributing to downward pressure."
Additional factors include tightening regulatory scrutiny, particularly from U.S. authorities reconsidering Ethereum’s classification, and macroeconomic headwinds like rising inflation and Federal Reserve interest rate hikes.
The Legacy of Ethereum Hard Forks
Ethereum has undergone multiple hard forks since its inception, most of which were consensus-driven upgrades such as Constantinople, Istanbul, Berlin, and London. These updates improved scalability, security, and usability without splitting the network.
However, not all forks maintain consensus. When disagreements arise within the community, they can result in chain splits, producing independent blockchains with shared origins but divergent rules. The most famous example is Ethereum Classic (ETC), born from a 2016 dispute over whether to reverse a hack on The DAO project.
Below is an overview of key Ethereum forked coins and their current status.
Ethereum Classic (ETC)
Ethereum Classic emerged in 2016 after a hacker exploited a vulnerability in The DAO smart contract, stealing 3.6 million ETH. In response, the Ethereum community voted to perform a hard fork to reverse the transaction — effectively rewriting history. A faction opposed this move on philosophical grounds, arguing that "code is law" and blockchains should be immutable. They continued supporting the original chain, now known as Ethereum Classic.
ETC remains one of the most recognized PoW alternatives to Ethereum. However, post-Merge, its price fell by 23.4%, trading at approximately $28.75 (CoinGecko data). While it upholds decentralization principles, its ecosystem lags far behind Ethereum’s in terms of developer activity and total value locked (TVL).
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Expanse (EXP)
Launched on September 7, 2015, Expanse was one of the earliest Ethereum forks. It aimed to create a decentralized platform for identity management, governance, charity, and commerce. Despite initial traction and active social media presence, EXP failed to build a meaningful on-chain ecosystem. Today, it remains largely inactive with minimal developer engagement or dApp deployment.
Ethereum Fog (ETF)
Introduced on December 14, 2017, Ethereum Fog sought to address Ethereum’s limitations in distributed storage and computing by introducing "fog computing" — a decentralized alternative to cloud infrastructure positioned closer to end-users. Leveraging the Bitcoin fork hype at the time, ETF gained short-term attention but failed to deliver sustained innovation or adoption.
EtherZero (ETZ)
Launched January 19, 2018, ETZ introduced masternodes and eliminated transaction fees for smart contracts to encourage broader DApp usage. However, it faced criticism over unclear development direction and potential phishing risks involving popular tools like MyEtherWallet and MetaMask. The project is now defunct — its website is offline and social media hasn’t been updated since 2020.
EtherInc (ETI)
Released on February 13, 2018, ETI aimed to power enterprise-grade applications by reducing block times, increasing miner rewards, removing uncle block incentives, and capping total supply. It maintained compatibility with Ethereum private keys and implemented replay protection. Despite technical improvements, ETI never gained significant traction and remains obscure in today’s ecosystem.
EthereumPoW (ETHW): The Post-Merge PoW Experiment
ETHW emerged as the most recent and controversial Ethereum fork — designed to preserve the PoW version of Ethereum after the Merge.
The launch was rocky:
- Initially used the same Chain ID as SmartBCH’s testnet, causing connectivity issues.
- Suffered a replay attack despite protective measures, resulting in the loss of 200 ETHW tokens.
- Faced skepticism over technical competence and network security.
On secondary markets, ETHW initially spiked due to airdrop-driven speculation but quickly collapsed — dropping 81.6% from its peak to a low of $3.88 before rebounding slightly to $6.11. Analysts attribute the decline primarily to sell-offs by early holders who received free tokens.
Challenges Facing PoW Forks in 2025
Unlike earlier forks like ETC — which occurred when DeFi and stablecoins were nascent — ETHW launched into a mature ecosystem where complexity is high:
- Stablecoin dominance: USDT and USDC (both supporting PoS Ethereum) represent over 10.6% of total crypto market cap.
- Massive TVL: Ethereum hosts over $389 billion in total value locked across DeFi protocols.
- Smart contract scale: More than 51.2 million smart contracts are deployed on Ethereum — growing by 50,000+ weekly even during bear markets.
Without support from critical infrastructure like Chainlink or Curve Finance — or major stablecoins — PoW forks struggle to sustain functional ecosystems.
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Building new clients, explorers, wallets, and governance models requires coordinated effort among developers, miners, and users — resources that remain scarce for ETHW.
Why Most Forks Struggle to Survive
Forking a blockchain is technically feasible but economically and socially challenging. Success depends on three pillars:
- Strong Developer Support
Without active contributors building tools and dApps, networks stagnate. - Robust Miner Participation
Mining requires profitability; declining hash rates weaken security. - Community Consensus
A unified vision attracts users; fragmentation breeds distrust.
ETHW benefits from backing by figures like Justin Sun and certain mining pools — but this support may not be enough long-term. As market sentiment sours and technical flaws surface, maintaining momentum becomes increasingly difficult.
Frequently Asked Questions (FAQ)
Q: What caused the price drop after Ethereum’s Merge?
A: The drop followed "buy the rumor, sell the news" behavior. Many investors anticipated gains and sold after completion. Displaced miners also contributed sell pressure.
Q: Is Ethereum Classic still relevant today?
A: ETC maintains ideological significance as a pure PoW chain but lacks the developer activity and ecosystem depth of Ethereum.
Q: Can ETHW succeed as a long-term alternative?
A: Its chances are slim unless it builds robust infrastructure, gains stablecoin integration, and fosters organic community growth.
Q: Why do blockchain forks happen?
A: Forks occur due to protocol disagreements or upgrade paths. Some are planned (soft/hard forks), others result from community splits.
Q: Are all Ethereum forks unsuccessful?
A: Most have faded, but ETC remains notable for its longevity and commitment to immutability.
Q: Does PoW still have a future in crypto?
A: While niche communities support PoW for decentralization ideals, scalability and environmental concerns favor PoS in mainstream adoption.
Final Thoughts
Blockchain evolution thrives on experimentation — and forks are part of that process. Yet history shows that technological continuity alone isn’t enough. True value lies in ecosystem strength, community trust, and sustained innovation.
While ETHW represents a bold attempt to preserve PoW ideals, its rocky start and weak fundamentals suggest an uphill battle ahead. For investors and developers alike, understanding the realities behind forked chains is essential for navigating the complex landscape of decentralized networks.
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