CoinShares experts were skeptical of the possibility of a potential Ethereum fork after the mainnet switched to the Proof-of-Stake consensus algorithm.

“Some miners have announced their support for the Ethereum fork that will not migrate to Proof-of-Stake, but will remain in Proof-of-Work. From a technical standpoint, this fork will not affect the current version of Ethereum, namely the updated ETH2 network,” the company’s analysts noted.

They removed “direct-on-chain risks” by allowing some price volatility in the future.

CoinShares has listed the main factors for the updated Ethereum to prevail over the current situation:

• The current network has more social support from the Ethereum Foundation and the wider community. This is evidenced, in particular, by the fall in the prices of video cards.
• Stablecoin issuers will need to choose a chain. They will almost certainly stay with ETH2 for “reputation and regulatory reasons”.
• Wrapped tokens like WBTC and RenBTC will lose value on the alternative chain as they “cannot be used through the underlying asset”.
• A hard fork will be required to remove the new PoW version of Ethereum from the code “difficulty bomb”. Otherwise, the blockchain will become “unusable”.
• In the context of ETHPoW, staking tokens and rewards will become “irreversible”. They cannot be properly distributed.

“This does not mean that exchanges will delist ETHPoW when/when this fork arrives,” said CoinShares researcher Mark Arjun.

In his view, many will sell the hard forked coins for the updated Ethereum.

“I am not sure if the potential value of ETHoW is close to the price of ETH2,” Arjun said.

According to CoinMarketCap, at the time of writing, derivative tokens based on a potential fork are priced at $101. Ethereum’s market cap is more than 17 times that of ETHPoW.

Previously, BitMEX exchange introduced derivatives based on ETHPoW tokens of a potential fork of the second largest cryptocurrency by capitalization.

Poloniex also announced support for the proposed Ethereum PoW fork on August 8 and listed ETHPoS (ETHS) and ETHPoW (ETHW) tokens. The MEXC Global platform did the same.

Huobi said it will take steps to support a potential fork once it has “obtained a general picture of user sentiment” and if the assets follow the listing guidelines.

Trading platforms Digifinex and OKX have begun assessing the consequences of a possible fork of the second-largest cryptocurrency by capitalization.

Recall that the developers of the decentralized oracles network said that Chainlink will not support the Ethereum fork in the PoW algorithm of the protocol.

About a similar solution reported Representatives of the DeFi platform DeBank.

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