Traders Are Turning ETC Into The Next Dogecoin

Moni

Odaily资深作者

2021-05-06 11:53 (UTC+8)

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There are three major reasons for ETC to take off.

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There are three major reasons for ETC to take off.

This article comes fromdecrypt, original author: Jeff Benson

Odaily Translator |

This article comes from

, original author: Jeff Benson

Odaily Translator |

Ethereum Classic (ETC) hit an all-time high of $38 on April 15, but it quickly traded above $100 on Robinhood and Coinbase, and on May 6, ETC traded at $100 on Coinbase. At $150, it was a surprise.

The cryptocurrency market tends to change dramatically overnight, with Ethereum Classic (ETC) taking many in the industry by surprise as its price soared. According to Nomics data, the price of ETC reached a high of $38.43 on April 15 last week. Unexpectedly, it broke through the $100 resistance level just a week later. According to the latest data from Coingecko at the time of writing, it was $91.45, a 7-day increase of up to 160.7%.

It is worth mentioning that the price information of ETC on different cryptocurrency exchanges is not the same. For example, on Coinbase, it once jumped to 149.75 US dollars, and then fell to 127 US dollars, which is 35 US dollars higher than Binance. , $12 more than Robinhood.

Although the large price difference is short-lived, the price increase is an indisputable fact. There may be three triggers for this to happen:

1. The entire cryptocurrency market is in a "bull market" phase

2. ETC is listed on several well-known trading applications

3. Major changes in the competition chain

Ethereum Classic is a product of the fork of the Ethereum blockchain in 2016. After signing a smart contract with the decentralized venture capital project The DAO, 3.6 million ETH (worth about 50 million US dollars at the time) were represented. Coins were stolen. This incident led to two very different approaches in the ethereum community - most stakeholders wanted to intervene and change the blockchain's code to retroactively eliminate the theft, and the unaffected portion of the community stood idle , they believe that the blockchain protocol cannot be changed just because the tokens are stolen.

Due to the huge and irreconcilable contradictions in the community, developers struggled, and finally the anti-intervention camp chose to fork and continue to use the original Ethereum blockchain-and this is now Ethereum Classic (ETC).

For years, Ethereum Classic seemed to be in a state of disarray. Throughout 2019 and 2020, the ETC token price never traded above $13, while the ETH price never fell below $100 during the same timeframe.

But now, with the increasing market demand of altcoins such as Dogecoin, Bitcoin Cash and EOS, ETC has also started its "good times". Will Foxley from cryptocurrency mining company Compass Mining said:“During this period of time, many crypto tokens have seen huge price spikes, and the profitability of mining Ethereum and Ethereum Classic tokens is now basically the same. Think about what Ethereum Classic was like a year ago, and today The ETC token price action is truly remarkable - there is no doubt that Ethereum Classic has recovered from multiple 51% attacks, weaker app traction and a split core development team.”

But why can Ethereum Classic win the "turnaround"? There are three main reasons:

First, unlike Dogecoin, the price of ETC has actually been undervalued for a long time.Federal Reserve Chairman Jerome Powell said last week of Dogecoin that despite being a joke, it has risen from $0.01 to $0.62 this year, “somewhat Asset prices have been pushed very high."

Powell believes that what is seen in the capital market will indeed be somewhat frothy. A bubble is actually a technical term for a price that is unsustainable because a bubble occurs when the price is higher than the intrinsic value of the asset. But this is not the case for Ethereum Classic, and from historical data, ETC prices have actually been underestimated for a long time.Second, the surge in ETC prices may also benefit from the three major cryptocurrency exchanges

, respectively: Binance, Coinbase and Robinhood. Binance is currently the largest cryptocurrency exchange in the world, while Robinhood and Coinbase are the favorite portals for cryptocurrency "noobs", both exchanges focus on continuously improving the buying/selling user experience and convenience. Notably, Robinhood and Coinbase have become the No. 1 and No. 3 apps on the Apple App Store — ahead of TikTok, YouTube, and Instagram. Take Robinhood as an example. The exchange only supports trading Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and...Ethereum Classic. There is no doubt that with the support of these exchanges, the price of ETC can easily reach a high level.