Ethereum Classic: A Blockchain with a Complicated History

Ethereum Classic (ETC) is one of the oldest blockchains still in existence, with a dedicated community of supporters. But is it more than just a meme, or does it have a future?

The Birth of Ethereum Classic

In 2016, the Ethereum network was hacked, resulting in the theft of 3.6 million ETH. The community was divided on how to proceed, with some advocating for a hard fork to reverse the hack and others wanting to continue with the original blockchain. The result was the creation of Ethereum Classic.

Where is Ethereum Classic Today?

Today, ETC is one of the largest blockchains by market capitalization, ranking 25th on CoinMarketCap. Its trading volume is significant, with a daily average of over $100 million. ETC was particularly popular during the 2021 bull run, reaching a high of around $180 before correcting to $13 in the summer of 2022. Since then, ETC has shown strength and has repeatedly attempted to break through the $45 resistance level.

Who Invests in ETC?

Notably, ETC investors often share similar characteristics with those who invest in Bitcoin Cash, Bitcoin SV, and other similar cryptocurrencies. They are enthusiasts who believe in the original principles and ideals of cryptocurrency. These early investors have remained loyal to their convictions.

Trading ETC

ETC is popular among traders due to its higher volatility compared to ETH and its listing on major exchanges. Traders use ETC for pair trading, which involves buying and selling two related cryptocurrencies to profit from their relative price movements.

The Future of ETC

It is unlikely that ETC will become a significant blockchain with high activity. The mining of ETC is concentrated and limited, posing security risks and potentially leading to long transaction times. Without significant projects building on the ETC blockchain, there is no reason to use this chain. The strength of the chain lies in its existing base of traders and fans who remain loyal to the blockchain and cryptocurrency.

Conclusion

Ethereum Classic is a blockchain with a complex history and a dedicated community. While it may not have a bright future, it remains a popular trading instrument and a reminder of the early days of cryptocurrency.

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