Ethereum classic (ETC-USD) after 2022 Crypto collapse invest now?
Coin Name and Trading Exchange Platform
Ethereum Classic – Binance Cryptocurrency Exchange
– Coinbase Cryptocurrency Exchange
– Other major exchanges e.g. eToro, OKEx
Ethereum Classic (ETC) is an open-source, blockchain-based distributed computing platform featuring smart contract manufacturing functionality.
It was originally part of the Ethereum (ETH) network and still retains its history. It was formed in 2015 and launched in 2016 after a hacking attack on the platform.
It is still acknowledged as the authentic Ethereum chain.
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The Ether token is vital in providing a public distributed ledger for transactions. It has found utility in everyday payments of gas and other transactions, like computational services on the network.
The total supply of Ether was hard capped at ETC 210.7M. This is distributed via a deflationary emission schedule.
Ether was created by the ingenious Vitalik Buterin and Gavin wood in 2015. ETH.ORG and EF are responsible for running the technology powering the cryptocurrency.
Recent Most Important News
The bears have taken hold of the markets and Crypto has been on the receiving end.
Ether has greatly fallen from the start of the year. It has shed more than 80% of its value in the period.
The Ethereum community conference was recently held and had fruitful benefits.
It was good news for the token as it was announced a proof-of-stake mechanism would be introduced via ETC.
This is a big step for the token which has for the longest time been operating using a proof-of-work mechanism that was less efficient.
The transition to the proof-of-stake has been dubbed ‘the merge’ and is already triggering rallying signals from ETC, leading it to outperform ETH in the past week.
ETC has spiraled upwards by more than 100% in just nine days. ETC is looking very attractive despite the collapse.
It is showing signs of rebounding in the near term if it can maintain the current pace.
Current position of ETC
ETC is rallying and questions have arisen about whether it’s hype or more ETH buyers shifting to the cheaper option.
But what exactly is responsible for the re-rise of ETH?
The history of ETH begins with Ethereum. Vitalik is credited to have found ETH but in actuality, it was founded by 8 people in December 2013.
This includes Cardano founder, Charles Hoskinson and Polkadot founder Gavin wood.
The initial philosophies were to make it exclusivity, immutability, and innovative. ETC was created to tackle vulnerability in the operating system.
After a theft in their Decentralized autonomous organization (DAO) leaving 5% of its circulating supply swindled, it was decided that they would fork creating ETH, ETC.
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ETC is almost identical to ETH apart from a little difference. Firstly, ETC is focused on remaining exclusive, ensuring what happens on the blockchain, Stays on the blockchain.
The tokenomics of ETC is also different from that of ETH.
A change made in the ETC in 2017 saw that reduces ETC block rewards by 20% every 5M blocks. This will continue until it hits its maximum supply of 210.7M, expected to occur around 2042.
ETH in contrast has a steady inflation rate with no maximum supply but could become deflationary if the improvement proposals that seek to increase the mining speed of ETH.
ETC will not be transitioning to a proof of stake consensus mechanism like its counterpart ETH.
It will remain on the proof-of-work of work mechanism, making it the only smart contract compatible POF blockchain after ETH 2.0 launches.
ETC is extremely centralized which has been its Achilles heel, rendering it open to double-spend attacks.
This is where a miner manipulates a blockchain into processing faulty transactions.
The last two years saw increased attacks via this loophole, with $7M worth of crypto reported having been stolen.
Thankfully, management led by Vitalik came up with a mining algorithm to prevent additional attacks. This modification is called MESSY and helps curb 51% of attacks.
ETC is developed and maintained by roughly 10 software companies, with Ethereum Classic labs taking the lead. It has its headquarters in San Francisco, California.
An intriguing fact is that IOHK, the company that maintains Cardano supports ETC.
Cardano founder, Charles Hoskinson has funded ETC with as much as $1.5M. Although they are rivals and he left the Ether network, he believes in its developments that will shape the industry.
ETC is soaring due to the planned roadmap to become better and adopt the POS mechanism. ETC started the run recently and other vital factors have enabled this.
Greyscale ETC trust has contributed significantly to back its projects. It has over $1.3B in Assets under Management.
It owns over 13% of the total ETC in circulation. Buying action by institutions is another contributing factor to the surge, those who were attracted by the transition.
ETC Price Chart
As of the 25th of June ETC was trading at $23.80 and has seen an upward movement in the past month. It is down by -6.65% from its previous close.
The total supply now sits at 136.1M. It has traded at a 52-week high of $77.27 and a 52-week low of $12.47.
Crypto and other markets have been hammered due to macroeconomic uncertainty. A new run is starting, with the coin up by 72% in the past week.
The coin is way below its all-time high of $174.73.
The share price is looking very cheap and tempting after the fall. It is dirt cheap and offers a low entry barrier compared to its larger peers.
Sentiment on ETC
ETC has lost a lot of value in the plunge and is now at a market cap of $3.3B. It is still one of the most valuable and trusted coins in the market.
Its ethics resonate with many who believe the ‘code is law’ principle should hold as it supports honesty and integrity.
The hard fork coming in this fall is anticipated to be a game changer and could potentially send the coin to the moon.
Other bullish sentiments are similarly based on ‘the merge’ and how it could affect the coin afterward. ETC miners will have to switch chains to keep it stable.
Pros of ETC based on Investors Outlook
- Cheap price – The token has fallen greatly after the crash and at less than $25 it is affordable even to the layman. The risk is therefore lessened when compared to more expensive coins that are 10x or even 100x its price.
- Powerful network – The Ethereum network is one of the most trusted in the world and only behind BTC in terms of market cap. ETC has the strongest links to ETH and looks like a cheaper and even better alternative, recognized as the original Ethereum chain by its founder Vitalik Buterin.
- Heightened Security – Due to past attacks and vulnerabilities in the past, tougher stringent measures have been taken to make it virtually impenetrable. It is now safer compared to most other coins that remain susceptible to malicious hackers
- New advancements – The migration of its mainnet to the more efficient and effective Proof-of-stake consensus is very promising. The merge could make flippening a reality and ETH could very well be in a position to overtake BTC as the leading crypto.
Cons of ETC based on Investors Outlook
- Market Sell-off – The coin has been on a bullish trend for the past month and has risen by an impressive 120% from the crash early in the year. With the volatile markets, individuals are looking to capitalize on any chance to make profits and will likely sell in mass driving down the price, at least temporarily
- Macroeconomic uncertainty – Crypto has rubbed traditional finance in the wrong way and the turmoil in the markets has been an opportunity for anti-crypto financiers to trash talk the sector. Recessionary fears have caused a flight to more conservative assets. Crypto has been portrayed as speculative which is susceptible to crashes,
Pros for investing based on the General Outlook
- Profitable Mining – Ethereum is the most profitable crypto to mine, ETC is still quite profitable with more room for growth. It could be a gem in the future with more growth on the near horizon.
- Strong Ethereum Community – The community is one of the most elite in the crypto world. It is made up of ace developers and competent experts with the financial acumen to keep it afloat.
- Wide applications and utility – Contrary to its counterpart BTC, the ETC, and ETH blockchain is focused on developing decentralized applications and industry solutions in Defi, gaming, advertising, supply chain management, and many more.
- Unstoppability – ETC has retained the original immutability intended when the network was once formed, unlike ETH. This is what makes blockchain useful/valuable and could be an incredible tool in the future. Code is the law for ETC, which was the initial promise.
Cons for investing based on the General Outlook
- Regulators Crackdown – Government and lawmakers throughout the world are set to put in place drastic measures to ensure crypto is ‘safe for the public’.
- The merge implications – Although layer 2’s solve transfer time issues, at the same level of security that POS weakens the blockchain. POS is very robust but not as good as POW according to some preferences. POW is what made the tokens gain commodity status by the SEC.
Growth Likelihood and Potential
With the imminent switch from POW to POS i.e. ‘The Merge’, ETC will become the largest proof-of-work smart contacts platform. Inherently, many of the miners that previously mined ETH will switch to ETC.
This is because the ETC hashing algorithm is almost identical to ETC. It supports the same hardware and mining. ETC should be as simple as switching to a mining pool that supports ETC.
Investors are now looking for more ETC exposure, which is leading to the surge.
Vitalik Buterin responded to the fanatics of the POW mechanism, urging them to consider migrating to ETC which is a totally fine chain.
ETC has a disruptive market growth opportunity as it is set to be a replacement for the big ETH network, bringing in a pool of miners.
Altcoins have regained momentum due a crypto relief from the federal reserve. ETC has the benefit of being an Ethereum-based coin, the closest one.
ETC has got the potential to support Ethereum miners coming in but will need some minor upgrades for it to commence.
ETC gains already surpassing that of ETH and this could continue in the near term.
Both ETH, and ETC will come roaring back with a vengeance, but the latter has more upside potential with a low entry barrier.
Seasoned Venture Capitalists and Crypto enthusiast is a big advocate of technology and believes the crash could be a perfect storm that stands to benefit the crypto market.
Although over-leveraged and illiquid players in the space will be wiped out in the coming years, the genuine and fundamental ones will survive and thrive.
Counterparty risk is particularly rampant in the sector and leverage should be avoided in any position.
Questions have also arisen about who hacked the DAO and why the token is specifically targeted.
One theory is that market makers and other crypto enemies are behind these attacks.
Another more probable one is that it’s an inside job and a member did not like how they previously operated the blockchain.
Generally, ETC is in a good position to take off, whether the market crashes or not.
Overall Verdict on ETC
The demand for ETC is rising and it has received positive attributes from both the inside and outside community.
The price levels are expected to grow higher with a median estimate of $50 by the end of the year. The technical is also shaping up to be pretty neat.
It has ditched a falling bearish pattern and is on an overall bullish trend. It is a good buying opportunity.
Oscillators are neutral on the token while moving averages indicate a buy. It has drawn support at the current price and fundamental development could see it rise astronomically.
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