EthereumPoW [ETHW]: How a forked chain is influencing others in this regard

While most networks saw an increase in DeFi TVLs in October, newly-forked chain EthereumPoW [ETHW] led the pack with the highest TVL increase. This is according to CryptoRank data.

According to DefiLlama, at the time of publication, 15 DeFi protocols were housed within the proof-of-work network, which had a TVL of $5.54 million. TVL on EthereumPoW was worth $1.42 million at the beginning of October. However, as more DeFi protocols were launched on the chain during the 31-day period, its TVL increased by 365% to $6.6 million at the end of the trading month.

Source: DeFiLlama

Launched on 15 September following the Ethereum network’s successful Merge, the EthereumPoW ecosystem has since seen growth despite the general controversy surrounding how the POW network came to be.

For example, as of 22 October, four NFT marketplaces were operational on the chain with six native NFTs projects.

— Wagmi33 Foundation (@wagmi33fund) October 22, 2022

ETHPOW since launch

According to data from OKLink, since ETHPOW network became operational on 15 September, transactions completed on it totalled 1.72 billion. Users have paid as transaction fees – 126.12 million – within the same period.

Furthermore, the count of total addresses on the network, at the time of writing, was 263 million addresses, with 262 million of those inactive. Also, the chain supports a number of Ethereum-based tokens issued according to the ERC-2 standard (528,689 tokens), the ERC-721 standard (137,591tokens), and the ERC-1155 standard (18,135 tokens).

As for its native token ETHW, since launch, its price has declined by 95%. Ranked 68th with a market capitalization of $670 million at press time, it was exchanging hands at $6.27.

What should you expect?

ETHW’s price has been on a downtrend since 28 October, forming a falling wedge. However, the trading session on 3 November was marked by a bullish breakout, one indicating that a price reversal might be imminent.

A look at the asset’s MACD revealed that a bullish divergence had formed since 27 October. This meant that selling momentum had slowed and the downtrend was due for a reversal.

Source: TradingView

While this is a good indication that ETHW might see some relief soon, it is not enough to conclude that this is bound to happen. A consideration of ETHW’s Relative Strength Index (RSI) showed that it rested below the 50-neutral spot at 33 at press time, heading to the oversold position.

The asset’s Directional Movement Index (DMI) also suggested that the sellers’ strength (red) at 21.77 was above the buyers’ (green) at 21.66, meaning that sellers had control of the market.

Source: TradingView

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