ETC Price Prediction

The price of ETC today is $13.93, changing within the past 24 hours for 6.39% and 0.05% over the week. ETC’s price action is characterized by the Bearish sentiment.

The current volatility index for ETC is measured at 6.85%. ETC’s circulating supply is 154.56M. In the big picture, the highest price ETC has reached is $165.751 and its lowest observed price was $0.4524.

ETC Sentiment

Which way the market swings today? Overall, technical indicators show that currently, the sentiment in the ETC markets is Bearish. The Fear and Greed Index for ETC today is in the 28 (Fear) zone.

What is Ethereum Classic (ETC)?

In 2016, the first decentralized autonomous organization (DAO) ever, The DAO’s contract was drained of funds that had been raised for the development of Ethereum. The community voted to roll back the blockchain to a pre-hack version, effectively returning the funds to The DAO’s contract.

However, there was a minority that criticized the decision and adhered to the principle “code is law”. They split the chain after a hard fork, and the offshoot which did not rewrite the transaction history became Ethereum Classic.

The cryptocurrency of the protocol is called Ether Classic and uses the ETC ticker. ETC has a hard cap on its total supply of 210 million and a ‘fifthening’ mechanism to reduce inflation from mining.

As the name suggests, Ethereum Classic is similar to Ethereum but they are not the same. You can learn more about the fork in our Beginner’s Guide to Ethereum Classic.

What Influences the Price of ETC?

Divergence from Ethereum

The origins and branding of Ethereum Classic still inevitably affect this cryptocurrency. So much so, that traders would mistakenly flock to ETC when ETH rallies.

Nonetheless, since the split, Ethereum Classic has been introducing changes that were not affected by the original and which had a positive effect on the price. For instance, one of these is the aforementioned hard cap on supply. This is not to say Ethereum Classic developers are inventing the wheel: they are also introducing select improvements from Ethereum.

A major difference between the two blockchains today is evident: the consensus algorithm. Ethereum moved to Proof-of-Stake in 2022, while Ethereum Classic remained a Proof-of-Work cryptocurrency. Consequently, it sports all appropriate features of PoW, such as mining and even a halving mechanism. While Bitcoin halvings have been reliably correlated with bull runs, there is no evidence that the same happens in other PoW cryptocurrencies which also undergo miner reward slashing.

Network Security

Having more miners is a thing that Ethereum Classic could benefit from massively. Until the Merge, the hash rate of ETC was low enough to let multiple 51% attacks occur. In 2020 in particular, a couple of 51% attacks happened within weeks.

Block reorganizations led to a value equal to millions of dollars double-spent and exchanges pulling ETC pairs down. Needless to say, this is an event that negatively affects the price and future prospects of the chain.

It seems that remaining a mineable coin helped to improve the network security at least in the hash rate department. In September 2022, a considerable amount of miners switched their power to secure and earn ETC when the option became unavailable in ETH.

Adoption

And yet, institutional investors are still willing to make a bet on ETC. In particular, Digital Currency Group, owners of Grayscale, has authorized purchases of ETC, and Grayscale manages $229M in ETC. Ethereum Classic has Barry Silbert, the DCG owner, to thank for the backing, as he is a vocal ETC supporter.

Nevertheless, even a few wealthy adopters cannot make up for the lack of retail. In March, as the crypto market was rallying due to the approval of BTC ETFs, Forbes published an article that was met with an outcry from crypto insiders.

Called The Rise of Crypto’s Billion Dollar Zombies, the editorial tried to look into the most prominent altcoins to see if the value they sport as market capitalization is backed by any real use. Although it was rife with factual errors (like calling Litecoin a hard fork of Bitcoin), the authors’ findings were not entirely wrong. Older altcoins with a market cap above $100 million bring very little revenue to miners or validators from transaction fees and are mostly used as speculative investments.

While it is easy to dismiss such articles as FUD, the call comes from inside the house, as one of the authors is an industry insider. Nevertheless, they managed to provide an outside look together with their co-authors, which, as much as crypto enthusiasts hated it, highlighted a pretty much real issue.