The Ethereum (ETH) merge marked a pivotal shift in the blockchain ecosystem, transitioning the network from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. This transformation has significantly impacted miners, reshaping mining economics, hardware utilization, and long-term strategies for both large-scale operations and individual participants. In this article, we explore the consequences of the merge on the mining landscape, covering miner migration paths, alternative PoW opportunities, hardware adaptation, and future outlook.
Major Mining Pools' Responses Post-Merge
Following the ETH merge, leading mining pools swiftly adapted their services to support alternative PoW chains. Most notably, Ethereum Classic (ETC) emerged as a primary destination for displaced ETH miners. Major pools such as Antpool, F2Pool, and Poolin have expanded ETC mining support, enabling seamless transitions for existing users.
ASIC miners, particularly those using Bitmain’s Antminer E9, were required to update firmware to switch from ETH to ETC mining. Bitmain officially released compatible firmware, allowing E9 users to mine ETC efficiently through supported pools. This upgrade is critical for maintaining operational continuity and minimizing downtime during the transition.
👉 Discover how to optimize your mining setup for post-merge profitability
ASIC vs. GPU Mining: Proportional Shifts in the Network
Estimates on the distribution of ASIC and GPU miners within the former ETH network vary:
- According to BitPro’s CEO, approximately 10% of Ethereum’s hashrate came from ASICs, with the remaining 90% dominated by GPU miners.
- Industry expert Michael Carter suggests a slightly higher ASIC presence, estimating between 20% to 30%, with GPUs accounting for 70% to 80%.
This distinction is crucial because ASICs are specialized and less flexible than GPUs. While ASICs like the E9 can be reprogrammed for ETC, most GPU miners have broader options—ranging from multi-algorithm mining to repurposing hardware for rendering or high-performance computing (HPC).
Miner Adaptation Strategies After the Merge
With ETH no longer mineable via PoW, miners have pursued several strategic paths:
1. Migrate to Other Proof-of-Work Blockchains
Miners are redirecting hashrate to alternative PoW assets such as:
- Ethereum Classic (ETC)
- Ergo (ERG)
- Ravencoin (RVN)
- Conflux (CFX)
- Firo (FIRO)
- Flux (FLUX)
- Beam (BEAM)
These networks experienced significant hashrate increases post-merge, especially ETC, which saw its difficulty more than double between July and September.
2. Transition to High-Performance Computing (HPC)
Forward-thinking mining companies like Hut 8 and HIVE Blockchain have pivoted toward HPC infrastructure. By acquiring data centers, they now offer cloud computing services that compete with traditional providers like Amazon Web Services. This shift allows them to leverage existing power and cooling systems while diversifying revenue streams.
3. Support Web3 Middleware and Rendering Services
Some operators are repurposing GPU farms to support decentralized rendering, AI training, or middleware protocols in the Web3 stack. These applications benefit from parallel processing capabilities inherent in mining-grade GPUs.
4. Sell Hardware and Participate in Staking
For miners unwilling to maintain physical operations, selling equipment and staking ETH offers a viable alternative. Validators earn rewards through block proposals, transaction fees, and MEV (Maximal Extractable Value), with annual yields ranging from 7% to 13%. Those lacking the full 32 ETH required to run a node can join staking pools or use trusted staking providers.
Can Miners Switch to Mining ALEO?
ALEO is a privacy-focused layer-1 blockchain that utilizes zero-knowledge proofs and requires substantial computational resources for mining. While technically feasible for former ETH miners to adapt their rigs, doing so involves notable hardware modifications:
- Requires multi-GPU server motherboards
- Needs multi-core CPUs and high-bandwidth memory configurations
- Involves non-trivial setup and maintenance complexity
When comparing retrofit costs:
- Filecoin (FIL) sealing machines: lowest conversion cost
- Chia plotting machines / Arweave (AR) nodes: moderate
- Ethereum GPU miners: highest retrofit cost due to architectural mismatch
Additionally, ALEO’s increasing difficulty with rising network participation may reduce long-term profitability for late entrants.
👉 Explore next-gen blockchain opportunities beyond traditional mining
PoW Coin Hashrate Trends and Market Performance
After the merge, several PoW coins absorbed displaced ETH hashrate. Key observations over the past two months include:
- ETC: Hashrate increased by 127%, though price dropped by ~11%
- ERG: 97.6% hashrate growth, price surged 115.9%
- FLUX: 89.9% hashrate rise, price up 107.1%
Despite massive inflows of mining power, ETC’s price performance lagged behind others—indicating potential for future price correction or "catch-up" appreciation if demand increases.
Current Top Alternatives for Migrating Miners
| Chain | Relative Profitability | Difficulty Trend | Notes |
|---|---|---|---|
| ETC | Moderate | Rapid increase | High competition expected |
| ERG | High | Stable | Strong community support |
| RVN | Medium | Gradual rise | Focused on asset issuance |
| CFX | Medium-High | Increasing | Backed by strong ecosystem |
Note: While ETC initially absorbed much of the ex-Ethereum hashrate, its profitability is likely to decline as difficulty rises further—especially if all ASIC capacity migrates.
Expert Analysis: Market Dynamics Post-Merge
- Fee Waivers Drive Short-Term Migration
Major pools introduced zero-fee mining campaigns for ETC in Q3 2025, accelerating miner adoption. However, this incentive-driven surge contributed to a doubling of ETC’s difficulty—from 280.8T to over 602T—reducing individual returns. - Limited Capacity for Full Hashrate Absorption
Even under optimistic assumptions (e.g., all ASICs moving to ETC), the network can only absorb part of Ethereum’s former hashrate. With current ETC hashrate around 45 TH/s, a full ASIC migration could push it toward 130 TH/s—leading to sharply reduced miner margins. Divergent Paths for Large vs. Small Miners
- Large-scale operations are investing in HPC and enterprise-grade infrastructure.
- Smaller miners await new PoW forks like ETHW or consider exiting mining altogether through equipment sales or staking participation.
Antminer E9 Return on Investment Outlook
Bitmain’s Antminer E9 remains a key option for ETC mining:
- Purchase cost: $9,999 (officially listed)
- Current static payback period: ~307 days based on September data
- If ETC difficulty doubles further (a realistic scenario), payback extends to approximately 650 days
This extended timeline underscores growing risks in continuing mining operations without access to low-cost energy or scale advantages.
👉 Calculate your potential returns in today’s evolving crypto landscape
Frequently Asked Questions
Q: What happened to Ethereum miners after the merge?
A: Miners could no longer mine ETH after the transition to PoS. They migrated to other PoW chains like ETC, ERG, or RVN; repurposed hardware for HPC; sold equipment; or participated in ETH staking.
Q: Is Ethereum Classic (ETC) a good alternative for former ETH miners?
A: Yes, especially for ASIC users with compatible hardware. However, rising difficulty and competitive pressure mean diminishing returns over time.
Q: Can I use my GPU rig to mine ALEO?
A: Technically yes, but it requires significant hardware upgrades including server-grade motherboards and memory. The retrofit cost is higher than for other chains like FIL or Chia.
Q: How profitable is ETC mining now?
A: Profitability has declined due to increased difficulty. Large operators with low electricity costs remain competitive, but small miners face longer payback periods—potentially exceeding two years under adverse conditions.
Q: Are there any new PoW forks of Ethereum?
A: Yes, EthereumPoW (ETHW) was launched as a continuation of PoW Ethereum. However, its long-term viability depends on sustained community support and exchange listings.
Q: Should I sell my mining rig or keep mining?
A: Depends on your energy costs, hardware condition, and market outlook. For many, selling equipment and reallocating capital into staking or other investments may offer better risk-adjusted returns.
Keywords: ETH merge, Ethereum mining after merge, ETC mining, Antminer E9 profitability, GPU mining alternatives, proof-of-work transition, post-merge mining strategies