One month after Ethereum’s historic transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the blockchain world continues to assess the ripple effects. The merge marked the end of an era—eight years of GPU-based mining powered by the Ethash algorithm—and left behind a massive 850 TH/s of computational power and a $5 billion mining hardware market. But where did all that算力 (hashrate) go?
With Ethereum miners forced to find new homes, smaller PoW blockchains scrambled to absorb the influx. This article explores how major alternative chains like Ethereum Classic (ETC), ETHW, Ravencoin, Ergo, and Conflux responded, analyzing their hashrate shifts, sustainability challenges, and long-term viability in a post-Ethereum mining landscape.
Key Findings at a Glance
- ~29% of Ethereum’s original hashrate redistributed across alternative PoW chains.
- Ethereum Classic absorbed the largest share—about 21% of former ETH hashrate.
- Most alternative chains saw temporary hashrate spikes followed by significant drops, indicating poor long-term miner retention.
- Over 60% of Ethereum miners likely exited the market or remain idle, contributing to downward pressure on GPU prices.
Why Ethereum’s GPU Miners Couldn’t Migrate to Bitcoin
Before diving into where miners went, it's crucial to understand where they couldn’t go.
Ethereum historically used the Ethash algorithm, designed to be ASIC-resistant and favor consumer-grade GPUs. In contrast, Bitcoin and other major SHA-256 chains rely on specialized ASIC miners that outperform GPUs by several orders of magnitude.
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This technological gap made it impossible for Ethereum’s GPU farms to compete on networks like Bitcoin or Bitcoin Cash. As a result, displaced miners were limited to a narrow set of Ethash-compatible or GPU-friendly PoW blockchains.
Ethereum Classic (ETC): The Primary Beneficiary
Overview
Ethereum Classic emerged from the 2016 DAO hack as a continuation of Ethereum’s original PoW vision. While its ecosystem lags behind modern Layer 1s, ETC remained one of the few viable destinations for Ethash miners.
Hashrate Impact
- Pre-merge hashrate: ~55.67 TH/s
- Peak post-merge hashrate: 234.35 TH/s (+320.9% increase)
- Current stable hashrate: ~146.93 TH/s
ETC absorbed the most significant portion of migrating hashrate—approximately 21% of Ethereum’s total pre-merge算力—making it the clear winner in the immediate aftermath.
However, despite strong initial adoption, ETC lost nearly 40% of its peak hashrate within weeks, signaling instability and declining mining profitability.
“Hashrate surged into ETC just before the merge, but long-term sustainability remains questionable without stronger economic incentives.” – Mining Analyst, F2Pool
ETHW (EthereumPoW): A Fork with Fading Momentum
Overview
Launched as a hard fork preserving PoW consensus, ETHW aimed to provide a seamless migration path for Ethereum miners. However, lacking support from major stablecoins (USDT, USDC) and DeFi protocols, its ecosystem remains underdeveloped.
Hashrate Impact
- Initial hashrate: 68.17 TH/s
- Current hashrate: 36.79 TH/s (–46% drop)
- Peak gain: +17.8 TH/s
- Estimated Ethereum算力 absorption: ~4.32%
Despite early hype, ETHW experienced rapid hashrate erosion. The sharp decline reflects weak token fundamentals and insufficient network security incentives.
Ravencoin: Asset-Focused Chain Sees Temporary Surge
Overview
Ravencoin, forked from Bitcoin in 2017, focuses on token creation and asset transfer. Its KawPow algorithm is GPU-minable and partially compatible with Ethash rigs.
Hashrate Impact
- Pre-merge hashrate: 2.6 TH/s
- Peak hashrate: 20.16 TH/s (+675% increase)
- Current hashrate: ~14.9 TH/s
- Absorbed算力 share: ~2.06%
Ravencoin benefited from speculative interest and price appreciation post-merge, but both price and hashrate have since corrected significantly.
Ergo: Innovation Meets Volatility
Overview
Ergo leverages the Autolykos PoW algorithm—designed for ASIC resistance and enhanced privacy through zero-knowledge proofs. It supports complex financial dApps and appeals to technically inclined miners.
Hashrate Impact
- Starting hashrate: 15.23 TH/s
- Peak hashrate: 175.11 TH/s (+10x growth)
- Low point after outflow: 20.23 TH/s
- Current stable level: ~58.8 TH/s
- Max算力 absorption: ~18.8%
Ergo witnessed one of the most dramatic surges but also suffered severe hashrate flight afterward. Its ability to retain miners hinges on improving token utility and developer engagement.
Conflux: A Unique Case of Stability
Overview
Conflux (also known as Tree-Graph Chain) is a China-originated Layer 1 using a novel Tree-Graph consensus to boost throughput. On August 10, it proposed switching to Ethash to attract Ethereum miners.
Hashrate Impact
- Pre-merge hashrate: 1.03 TH/s
- Post-merge peak: 3.29 TH/s (+329% increase)
- Current hashrate: ~2.97 TH/s
- 算力 absorption: 0.26%
Unlike others, Conflux did not experience significant hashrate outflows after the initial spike—suggesting better retention or strategic miner partnerships.
Minor Chains: Short-Lived Booms
Several smaller blockchains saw explosive but unsustainable growth:
- Neoxa: +6x hashrate peak
- Flux (Zelcash): +4.3x surge
- Firo: Nearly +10x increase
- Bitcoin God: +4.4x rise
While percentage gains were impressive, their base hashrates were so small that their overall impact was negligible—most absorbed less than 1% of Ethereum’s displaced算力.
Market Implications & GPU Oversupply
The exodus of Ethereum miners has far-reaching consequences beyond blockchain metrics.
According to Northeast Securities:
- Approximately 17 million RTX 3060-level GPUs or 42 million GTX 1060-level cards were used in Ethereum mining.
- With around 60% of miners exiting, millions of used GPUs flooded the secondary market.
- Combined with weakening demand in gaming and AI sectors, this glut is prolonging a bearish cycle in the graphics card industry.
The Future of PoW Mining
As PoS adoption grows across major networks, viable PoW alternatives are shrinking. Outside of Bitcoin and a few niche chains, GPU mining opportunities are dwindling.
Key challenges ahead:
- Limited high-value use cases for PoW beyond security
- Declining developer interest in PoW ecosystems
- Rising energy scrutiny and regulatory pressure
Unless new narratives emerge—such as decentralized AI training or verifiable computing—the long-term outlook for physical mining hardware remains bleak.
Frequently Asked Questions (FAQ)
Q: Did all Ethereum miners stop mining after the merge?
A: No, but an estimated 60% exited the market. Around 29% migrated to alternative PoW chains like ETC and Ergo, while the rest became inactive or repurposed equipment.
Q: Can old Ethereum GPUs be used for Bitcoin mining?
A: No. Bitcoin uses SHA-256 and requires ASICs. GPUs are inefficient and unprofitable for BTC mining compared to dedicated hardware.
Q: Is mining still profitable on Ethereum Classic?
A: Marginally, depending on electricity costs and hardware efficiency. However, profitability is significantly lower than during peak Ethereum mining days.
Q: Why did Ergo lose so much hashrate after its spike?
A: Early gains were driven by speculation. Without strong token demand or ecosystem growth, miners left when rewards no longer justified operational costs.
Q: Will any new PoW chains emerge to absorb more算力?
A: Possible, but unlikely at scale. Most investor and developer attention is focused on PoS and hybrid models, limiting innovation in PoW space.
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Conclusion
The Ethereum merge didn’t eliminate算力—it redistributed it. While chains like Ethereum Classic, Ergo, and Ravencoin captured temporary surges, most struggled to retain miners due to weak economic models and limited ecosystems.
Ultimately, only a fraction of Ethereum’s vast mining network found sustainable homes. The rest either shut down or await the next big opportunity in blockchain computing.
As the industry evolves, the role of physical mining may shrink—but for now, these alternative chains serve as living testaments to decentralization’s resilience.
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