• POW coins had a great week with top gainers such as Bitcoin Cash (BCH), eCash (XEC), Bitcoin Satoshi’s Vision (BSV) and Litecoin (LTC).
• The SEC’s actions and the upcoming Litecoin halving event may have contributed to the rally.
• Other POW coins like Ethereum Classic (ETC) and Zcash (ZEC) also experienced significant gains.
Proof of Work Coins
Proof of work-based digital assets have been on a roll lately, with gains of up to triple digits at one point. Last week, four out of the five top gainers on the 7-day pane were proof of work cryptocurrencies: Bitcoin Cash(BCH), eCash(XEC), Bitcoin Satoshi’s Vision(BSV) and Litecoin(LTC). Compound was the only cryptocurrency that performed better than these four during this period. Additionally, Ethereum Classic(ETC) and Zcash(ZEC) also experienced significant gains over their average trading price on crypto exchanges a week ago.
Potential Contributing Factors
The recent surge in POW coins could be attributed to several factors, including SEC’s actions, falling energy prices, and Litecoin’s halving event which is scheduled for next month.
The U.S Securities and Exchange Commission has recently taken action against companies issuing ICO tokens or tokenized securities without being registered with it. This could explain why investors are increasingly turning to more established cryptos like POW coins for safety.
Falling Energy Prices
Cryptocurrency mining requires large amounts of energy to power computational tasks needed for verifying transactions in the blockchain network. With energy prices dropping due to global economic downturns caused by COVID-19 pandemic, miners can now afford more computing power than before which helps them earn greater rewards from block rewards while validating transactions faster on the blockchain networks they mine on. This has resulted in an increased demand for PoW coins as well as their respective mining rigs for investors looking to benefit from this trend.
Litecoin Halving Event
The upcoming Litecoin halving event is another contributing factor in the rise of PoW cryptocurrencies last week as investors anticipate its effects on LTC’s price movements post-halving day when miners will receive half of what they currently earn from block rewards compared to pre-halving day values..