The cryptocurrency market is on fire and Ethereum Classic (ETC) is leading the charge. It rose by 300% in a single week, and it looks like it’s not going to stop any time soon. It’s currently trading at around $20.50, but a week ago it was only $8.00. What’s behind this sudden increase in value? How long will it last? Is Ethereum Classic even worth investing in? Let’s look at what’s going on.
The Ethereum Classic is an alternative cryptocurrency (altcoin) that forked from the original Ethereum blockchain during the infamous DAO hack in 2016. At the time, a lot of people were upset because Ethereum’s developers decided to refund the stolen funds by making everyone who had invested in the DAO lose some of their money.
The quirky but ironically incorrect Ethereum and Telcoin (TEL) are leading the rise in new altcoins this week. Bitcoin (BTC) fans have been clamoring for fun for some time now.
Ethereum Classic (ETC), the favorite cryptocurrency of Digital Currency Group founder Barry Silbert, is up 300% in a week.
ETC touch $180 :. Bull market or casino market?
In the latest incarnation of the 2021 altcoin season, altcoins are passing the torch to each other as investors look for optimal returns.
This year, the market has seen a strange shift in emphasis from the scenario of using tokens to the culture around it. This is clearly evident in Dogecoin (DOGE), the high-flying cryptocurrency of 2021, which has risen more than 7,000% since January.
Memes and other social triggers also seem to be behind this week’s outburst: The value of the ETC has exploded without significant change. TEL benefited from the successful migration to the second team.
Casino Market Hypothesis, Adam Beck, CEO of Blockstream, responded in a Twitter chat when asked why the altcoin market is doing so well.
As Cointelegraph reports, Beck also cited the luck of the draw as a driving force behind DOGE’s growing fortunes.
Others have noted that investing in ETCs in particular can be not only short-sighted but also dangerous: The blockchain has been attacked 51% of the time in its four years of existence, indicating a lack of security and resilience that bitcoin and the more recent Ethereum (ETH) do not have.
Price volatility was also observed: ETC was trading at a massive 50% premium on Coinbase when prices skyrocketed on Wednesday.
ETC/USD (Binance) 1 day candlestick chart. Source: View of the shop
However, the fans were not deterred and seemed in no hurry to leave their seats.
Last week my dad told me he bought $ETC for $30 and I told him he bought the wrong Ethereum and there was no use case or acceptance.
Immediately after, he sold it, and it’s now worth $140.
I will deny myself before he does.
– Squeeze (@cryptoSqueeze) 7. May 2021
Silbert himself reminded his followers on Twitter of the trajectory of the price of ETC since its inception in 2016 – from $0.50 to over $180 and a three-year high against bitcoin.
Asked if he was satisfied with the events, Silbert said Thursday was a good day.
ETC is now the 13th largest cryptocurrency in terms of market capitalization, after starting the year in 38th place. The side effect of increased interest in ETH is a recurring theme when it comes to its successor. TheTIE data shows that, for the first time, the number of tweets dedicated to ETH exceeded the number of tweets dedicated to BTC.
Tweet Volume Chart for BTC (green), ETH (red), ETC (blue). Source: ITE
Classic altcoins are coming out of hibernation
Meanwhile, bitcoin is repeating moves of a different, less favorable kind as the week draws to a close. On Friday, BTC/USD again failed to break through the resistance around $60,000 and fell back to the lows of $55,400, the $56,000 level.
However, despite the relative lack of growth, market participants who have been in the market for a long time continue to adhere to the bull market mentality.
BTC, ETH and the general market continue to pump and pump, unrealistically, Simon Dedich, managing partner of blockchain investment and advisory firm Moonrock Capital, summarized Thursday.
After two years of a bear market, one learns to appreciate each day of a bull market. Don’t take this market for granted. Stay humble, stay grateful, stay reasonable.
According to Cointelegraph, many of the altcoins that have been on the market the longest have returned to form in recent weeks.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop
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