Ethereum Classic is growing again, outpacing Ethereum since the beginning of the year - but what doe
Ethereum classic (ETC), a network created after the hard fork of the original Ethereum (ETH) blockchain in 2016, is gaining momentum in the market again and has been ahead of ETH since the beginning of the year. However, history shows that ETC rallies rarely last long.
Although the prices of both coins have declined since the beginning of the year, ETC has managed to outperform its larger brother ETH. From the beginning of the year to noon (UTC) on Tuesday, ETC fell by 28%, and ETH - by 59%.
In addition, since reaching the local bottom of $13.34 a week ago, the ETC price has increased by almost 87% to $25.2. For comparison, ETH has grown by almost 54% over the same time period, from $1006 a week ago to $1551 at the time of writing.
The strong ETC rally is now taking place after another short-term jump in March and April of this year, when ETC grew by more than 90% in just two weeks. This was followed by a dump of about 47% over the next 30 days.
Looking at the chart, you don't need to be an expert to understand that ETC behaves like ETH on steroids. The prices of two coins tend to move in the same direction, but ETC often experiences stronger rallies followed by deeper corrections.
Price since the beginning of the year for ETC/USDT (blue line) and ETH/USDT (red line):
If you zoom in, the same thing can be seen in a longer time frame.
As the website reported in March of this year, a significant increase in ETC prices relative to ETH was observed in August and December 2016, September 2018, February 2020 and May 2021. However, after each spike, the market always turned down again, with ETC usually ending up at a lower level than before the price rally began.
ETC/ETH price since 2017:
Nevertheless, it is worth noting that Ethereum Classic as a network has its own set of foundations supporting it, for example, the hashrate on the network has grown significantly during 2021. However, hashrate growth seems to have stagnated this year, usually in the range of 22 to 28 Tes/s.
In addition, the narrative is gaining momentum that Ethereum miners can switch to Ethereum Classic as Ethereum moves to the Proof-of-Stake (PoS) consensus mechanism, although such a shift is still not visible in the data.
Ethereum Classic Hashrate (7-day Simple Moving Average):
However, there is still hope among the members of the Ethereum Classic community that ETC will come as soon as Ethereum Merge appears, and some even say that institutional investors prefer ETC because of the basics:
At 12:11 UTC, the 24th coin by market capitalization, ETC, was trading at a price of just over $25.1, which is 12.3% more for the day and 77% more for the week. At the same time, the second coin on the list, ETH, is trading at $1,548, which is 5% higher for the day and 41% for the week.
https://coin-signal.com/cryptonews/ethereum-classic-is-growing-again-outpacing-ethereum-since-the-beginning-of-the-year-but-what-does-history-show/
#Again, #Altcoins, #Beginning, #But, #Classic, #Cryptonews, #Does, #Ethereum, #Growing, #History, #Outpacing, #PATTERN, #Show, #Since, #Year
#Altcoins, #CryptoNews, #Ethereum