What happened to cause Ethereum Classic to set a new high and climb 10 times faster than ETH?

 

In the last 24 hours, Ethereum Classic (ETC) has increased by 50%. As a result, the cryptocurrency hit a new all-time high of $135.17.

The ETC increased by more than 280 percent in the last seven days, according to Coingecko numbers. This growth is nearly ten times greater than that of Ethereum (ETH), which increased by 30% over the same time span.

Its transaction volume has also increased dramatically, jumping from about US $ 5 billion last Sunday (2) to more than US $ 22 billion in the last 24 hours. With that, the cryptocurrency re-entered the top 15 in terms of market capitalization, with a market capitalization of nearly US $ 17 billion.

Even so, Ethereum Classic has a three-fold increase in value over Dogecoin (DOGE), which has recently become a business highlight.

The ETC figures are even more shocking when you consider that, in comparison to other major cryptocurrencies, the asset only made a minor advance in 2020.

During the year, assets such as Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) appreciated by more than 400%, but Ethereum Classic gained less than 30%. One explanation may have been the cryptocurrency's network being subjected to 51 percent assaults.

Reasons for the Ethereum Classic's recent high

According to analysts, the ETC has been regarded as a "cheaper Ethereum," which is why it has become a purchase choice for investors looking to profit from the current state of the cryptocurrency sector.

The statement is founded on a scramble for higher-yielding assets amid inflation concerns.

Inflation is a term that almost everybody who knows something about economics has used. This concept is usually associated with negativity,... The dollar has gained strength as a result of capital injections by central banks via monetary issuance. Joe Biden, the Vice President of the United States, proposed a new $1.8 trillion stimulus package in April.

In their quest for safety, investors consider a variety of factors, including the asset's scarcity, which may have drawn attention to the Ethereum Classic.

Just 127 million ETC units are currently in circulation. Anti-inflationary mechanisms are also built into the asset. Its bid has a maximum capacity of 210 million units. However, for every 5 million blocks produced in the network, its emission rate decreases.

However, some argue that retail is the real driver of ETC's upward trend. The rise may have been the product of a large number of traders using the Robinhood app, which is common among young US investors, according to industry insiders.

In May, when Dogecoin was at its peak, the network came to a halt. In addition, many cryptocurrencies traded on the platform, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, have hit new highs in recent weeks. The Ethereum Classic was the only thing that was missing.

This is what Barry Silbert, the founder of the company that runs Grayscale, the world's largest cryptocurrency fund, observed on Wednesday (5).

“Only Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and... Ethereum Classic are supported by Robinhood. I believe I have figured out where the DOGE money will go next.

 

 

The History of Ethereum Classic

The Ethereum Classic is the result of a contentious split among the Ethereum creative team in 2017, which culminated in a network fork and the subsequent split into two projects.

The bulk of the crypto community at the time thought the fork was a success. However, some people believe he set a bad example and went against some of the network's values.

Charles Hoskinson, who would later find Cardano, was one of these people. The American, on the other hand, has already confirmed that ETC is not his own project and that he has no aspirations from it.

The ETC's origin may also be a factor in the current high. While the Ethereum Classic lacks cutting-edge technology in areas such as decentralized finance ( DeFi ), it remains true to Ethereum's original code.