Some also-ran coins, such as ethereum classic (ETC), which were left behind after last year’s rally in bitcoin (BTC) and ether (ETH), are having a fresh look from speculative traders and mooning to previously unimaginable amounts.
In 2017, the Ethereum Classic blockchain split from the more well-known Ethereum blockchain in a controversial “hard fork.” Prices for ether, Ethereum’s native cryptocurrency, quadrupled last year as interest in the future development of decentralized finance, or DeFi, grew. The biggest cryptocurrency, Bitcoin, has doubled in value. ETC, the Ethereum Classic coin, gained just 26%.
In 2021, cryptocurrency values are surging around the board; the doggie-themed prank token dogecoin (DOGE) has risen 117-fold, which would be hilarious if it weren’t real. And ETC has jumped 13-fold in the digital-asset markets this year, to a market cap of about $10 billion.
Early Wednesday, ETC reached a new high of $108.32 and was trading around $102 at press time. Early today, Dogecoin reached a new lifetime high of $0.69. According to CoinDesk 20 numbers, the joke cryptocurrency was up just 10% at press time, while ETC was up a whopping 62 percent.
That’s despite the fact that the network is often mentioned by major cryptocurrency investors and observers as one of many possible “Ethereum killers” – upstart blockchains including Cardano, Polkadot, Solana, and Binance Smart Chain that might offer Ethereum alternatives for DeFi applications.
Denis Vinokourov, head of analysis at Synergia Capital, told CoinDesk, “It appears to be driven by ‘cheaper’ ethereum play and retail traffic that has propelled DOGE to sky-high heights.”
In the first five days of May, the ethereum classic coin, which is now ranked 16th in terms of market cap, has risen by 128 percent. Even dogecoin has outperformed, rising 90 percent over the time and setting a new high early Wednesday at the meme-y price stage of 69 cents.
Notably, as coronavirus-related constraints ease, ethereum classic can benefit from traders searching for an alternative to inflationary pressures – a trend that has attracted many major institutional investors to bitcoin.
According to Messari, the total supply of ETC will be limited at 210.7 million tokens due to the Ethereum Classic blockchain’s underlying coding, and the rate of new supply will be decreased any time 5 million additional data blocks are added to the blockchain.
As a result, the revived interest in ETC may be a result of the Federal Reserve’s trillion-dollar money printing spree since March 2020.
During a virtual press conference last week, Powell said, “You are seeing things in the capital markets that are a little frothy, that is a reality.” “I won’t say it has nothing to do with fiscal policy, but it does have a lot to do with vaccination and the reopening of the economy.”
In October 2020, a wall of money from major institutional investors and retail traders searching for quick profits started pouring into crypto markets through bitcoin. As a result, the most valuable cryptocurrency has risen sixfold in the last seven months, from $10,000 to new highs of more than $64,800. Over the last two weeks, however, prices have remained stable in the $50,000 to $60,000 range.
Recently, the focus has shifted to ether, which is now routinely setting new all-time highs. Since then, the second-largest cryptocurrency by market capitalization has risen sharply from $2,100 to new highs of over $3,500, with analysts praising Ethereum’s strong organic development.
And now, all of a sudden, the ethereum classic is no longer a joke.