Making an ETC coin price prediction can be a bit tricky after a sudden rise, but it’s worth looking at what has happened, and what might happen next
- Will Ethereum Classic go up?
- Is Ethereum Classic a good investment?
- What is the difference between Ethereum and Ethereum Classic?
Ethereum Classic really made the headlines this year. The offshoot of Ethereum has made waves in its own right, with a substantial increase in value over the first week of May to an all-time high of $176.16 – up nearly 10 times what it was a month earlier, and nearly five times its value at the end of April. However, on 26 November 2021, the price was trading at roughly $46.75. So what now? And is it possible to make an ETC coin price prediction 2021 for the rest of the year?
See more: Is ethereum classic a good investment
Before looking at an Ethereum Classic future, we will need to take a little history lesson. Ethereum itself was initially proposed by Vitalik Buterin in 2013 and went live in July two years later. The idea was to have a globalised platform that would let people set up decentralised contracts. These are agreements between two parties that are automatically processed by the blockchain once certain demands are met. However, in 2016 things changed.
The decentralised autonomous organisation (DAO) was a platform that allowed people to promote and, crucially, raise money for their start-up apps. You had to buy DAO tokens with Ether to enter, votes would be held on whether or not to fund something, and apps that had 20% or more support got a share of the investment. The Split Function allowed people to withdraw their support in return for getting their Ether back after a 28-day waiting period. Unfortunately, there was a flaw in the Split Functions code. This meant the network kept refunding the same tokens without anything popping up on the public register.
Although not all was lost, the fact that the network was based around Ethereum meant that it took a big reputational hit. Investors were polled, and the majority decided to set up a hard fork, meaning all Ether coins issued after a certain date would, in effect, be invalid. People got refunds and everyone was happy. Well, everyone except for a substantial number of investors who saw no need to go to such extreme lengths. These people kept the original blockchain and rebranded it as Ethereum Classic.
For a long time, ETC was very much overlooked. People decided they would rather have the original Ether than its offshoot. However, earlier this year, the market basically corrected itself, meaning it started to pick up pace. With Ether being more and more popular and therefore more expensive, a lot of people switched to ETC. This means an ETC price prediction should bear in mind how well Ether is doing – and Ether is doing well at the moment.
However, we have to strike a note of caution here – ETC went up faster and higher than anyone had really predicted over the May period. Like with any crypto, a long-term prognosis is difficult to establish, but prospective investors will need to take a sober view of it’s long-term value, and take into account the volatility in these markets.
Will Ethereum Classic go up?
It might, it might not. Since hitting a high of $176.16 on 6 May, the price has not managed to rise above $100. September was a very volatile month for all cryptos. With an ETC coin price prediction 2021 for the rest of the year, it remains to be seen how well the market recovers from recent crashes. On 26 November 2021, ETC coin was trading at roughly $46.54.
Is Ethereum Classic a good investment?
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Oddly, if we want to find an answer to this question, we have to look at another crypto. Since Ethereum Classic is, in effect, an offshoot of Ethereum, the success of ether can push investors into Ethereum Classic. If Ethereum is getting a bit too expensive, then ETC can be seen as a good alternative, seeing as it is used in very similar ways.
DigitalCoin’s Ethereum Classic prediction believes it will reach $157.37 by November 2025, and its ETC coin price prediction over the longer term sees it reaching the $200 mark by 2028. However, Long Forecast’s Ethereum Classic prediction thinks the price will be $50.28 by the end of 2021, then go to $90.04 by November 2022. The site has an Ethereum Classic price prediction of $70.94 by the end of 2023 and but dropping to $40.23 by November 2025.
What is the difference between Ethereum and Ethereum Classic?
We’ve read about the history, but there are other, practical differences between Ethereum and Ethereum Classic. For instance, Ethereum is seen as the more established cryptocurrency, and earlier this year the Chicago Mercantile Exchange approved the trading of Ethereum futures. It also has the support of the Enterprise Ethereum Alliance, which has more than 200 members, including CitiGroup and JP Morgan.
Perhaps most notably, as of 26 November 2021, Ethereum’s market cap is $494bn, making it the second-largest crypto behind Bitcoin, while Ethereum Classic’s cap is $6.7bn. That’s not to say that Ethereum Classic is necessarily a bad choice, it just means that, at the time of writing, it is much smaller.