Ethereum Classic has had the support of core investors since its creation in 2015. Ethereum Classic is part of the Ethereum blockchain family, and this gives this cryptocurrency a lot of sway in the market. Investors have had their eye on Ethereum Classic since the Ethereum split of 2016, to decide which is the better cryptocurrency to invest in for long term gains.
Many blockchain users are huge supporters of using the original blockchains, without variations and additions. These crypto users find the original designs to be the most stable long term and the most logical investments for future Defi expansion.
Ethereum classic, like Bitcoin, is an open-source blockchain protocol that uses a public ledger to record transactions. It also uses a similar mining concept, where native coins are produced as a reward for miners who complete transactions on the blockchain. The native coin of Ethereum Classic is ETC.
This protocol uses a smart contract script to form a virtual machine that allows users to complete transactions on the blockchain. Miners also receive coins for their work which can then be circulated.
Ethereum Classic is the original version of the Ethereum blockchain. The version currently known as Ethereum is the offshoot that broke away in 2016. Now that the two have been separated for some time, investors are wondering if Ethereum Classic might be the right investment for 2021.
Ethereum Classic has had a core support base from the start and it is a strong performer in the growing world of decentralized finance (Defi). Ethereum Classic may not yet have hit the big figures that Ethereum has, but investors are not giving up on this promising cryptocurrency.
- Ethereum Classic Vs Ethereum
- Ethereum Classic Compatibility
- The Magneto Update
- Trading ETC to USD
- Will Ethereum Classic Rebound from the Last Correction?
- Predictions for Ethereum Classic in 2021 and the Future
Ethereum Classic Vs Ethereum
Ethereum Classic is the version of the protocol originally started up by Vitalik Buterin, Gavin Wood and Jeffrey Wilcke. The history of this protocol is complete and is embedded in the Ethereum Classic Blockchain. When Vitalik Buterin left in 2016 to create an altered version of Ethereum which took the original name with it, Ethereum Classic was left as it was.
The Ethereum Classic blockchain is overseen by lots of teams working together to create a decentralized system of nodes. Where Ethereum has tried to change the history of the Ether coin ETH, Ethereum Classic holds the original timeline and uses the coin ETC.
Although the split occurred because of an attack on the Ethereum blockchain, and the move to Ethereum was meant to be a quick fix, many still prefer ETC. The Ethereum Classic community feel that blockchain coding authenticity must be given priority for the cryptocurrency to function properly long term.
Ethereum has gone down a road of constant changes. However, Ethereum Classic is sticking to the proof of work system that it was designed to use and the original blockchain laws that were built into the protocol. They use the mantra ‘Code is Law’ and follow this to preserve the Ethereum Classic protocol.
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Ethereum Classic Compatibility
The Ethereum Classic system may be the original system, but it is not without its updates and streamlining improvements.
In 2019 the Atlantis activation occurred on the Ethereum Classic blockchain. This activated parts of the blockchain that were previously dormant. Further activations in 2020 made the Ethereum Classic system compatible with the Ethereum off-shoot system.
This allowed users who were on both networks, or who had chosen one to use previously, to easily move their applications and currency between the two. This increased the scope of both blockchains and made greater scalability an option. This was a turning point for investor interest in ETC.
Previously Ethereum had been outperforming Ethereum Classic as the name had carried with it the high earning power of the system. However, investors are seeing a lot of potential in this cheaper coin going forward. Particularly now that decentralized applications (Dapps) on both systems can be interchanged and swapped between blockchains.
The Magneto Update
The Magneto update that was announced in June 2021 is a huge step forward for Ethereum Classic. The upgrade is set to improve security. Security has been a concern after the hack which caused the split-off of Ethereum from Ethereum Classic.
The upgrade is also designed to optimize gas usage as well as transactions on the blockchain. Gas is the term used to describe the fees that are charged for transactions. The gas that is used to complete a transaction indicates the energy consumed during the transaction.
Proof of work mining systems like Bitcoin and Ethereum Classic involves substantial energy costs. The Magneto update will help to keep the gas prices low to prevent transactions from becoming too expensive. The fees are necessary to compensate the miners who help to process the transactions. Incentives like these keep the system running smoothly.
Due to the scalability options, once the update is completed, investors are looking to add Ethereum Classic to their portfolios in 2021. This is while costs are still relatively low to buy the ETC coins, as prices are indicated to go up after the update is completed.
Although the Magneto upgrade will in some ways make Ethereum Classic more like Ethereum, it will not alter the protocol’s history. Ethereum Classic will still be an intact original record of the cryptocurrency. However, the upgrade is designed to finally make ETC achieve the high coin prices seen in the Ethereum offshoot.
This is why investors are choosing now as the time to buy ETC before the projected boom in price. The upgrade is projected to go through in July 2021.
Trading ETC to USD
Ethereum Classic experienced a surprising amount of resistance in its early life due to the strain of the split between Ethereum Classic and Ethereum. The progress was muted and there was a long period of sideways trading. The sideways trading pattern which dominated 2019 and 2020 kept the ETC price hovering around the $5 mark.
Investors were frustrated with the stagnant position in the market until the arrival of 2021. After the loss of belief in the stock market which followed the 2020 covid-19 market crash, attention turned to cryptocurrency. Faith in the crypto sector was building as the cryptocurrency market had recovered from the crash much quicker than expected. This led to a market-wide surge which began to affect Ethereum Classic in 2021.
The momentum was slow throughout January and the ETC surge was taking longer to arrive than it had elsewhere in the crypto market. The $10 mark was surpassed in mid-February 2021.
April saw a sudden surge for ETC. After an initial increase, reaching a peak of $40, ETC exploded reaching an all-time high of $177. This peak was well worth the wait for the investors who had made returns of more than 3300%.
Unfortunately, the high coin price was short-lived. The correction did not appear to be as steep as those experienced by ETC competitors. However, the bear market which hit the crypto sector in May 2021 took the stock price down steadily over the rest of May. This took the overall correction down to a price of $51.75, which was a massive downturn given the recent peak.
As the bearish trading pattern continued through June 2021 ETC has dropped further in price. But the losses have not been as large as expected. Elsewhere in the crypto market coins have suffered harder losses, where ETC is showing a robust trading pattern despite the downward trajectory.
Will Ethereum Classic Rebound from the Last Correction?
Ethereum Classic suffered a hard blow when the recent correction knocked it back down to $51.75. This was well below the $100 mark that investors had hoped to maintain. However, as the recent peak has shown a scope of movement for ETC which it has not previously seen, it is likely that ETC will rebound well when bullish trading returns.
The surge in ETC price was late in the price wave that swept the crypto sector, which meant the correction coincided with the bearish turn in the market. This was compounded and led to a large drop in price. Given that ETC has been relatively stable, dropping slowly in this bearish trading period, it is likely to resume an upward trajectory in the next bullish cycle.
The current price of $56 at the time of writing is a promising sign for the recovery of ETC losses. The recent pattern has been too volatile to predict a definite upswing at this point. But the upward moment suggests that ETC will recover its price over the next few months.
Predictions for Ethereum Classic in 2021 and the Future
The future is looking surprisingly bright for Ethereum Classic, despite the underwhelming performances seen over the past two years. Ethereum Classic has underperformed in terms of the share price. Investors were concerned that it was not achieving the coin prices seen in its offshoot Ethereum.
The huge surge in May 2021 has shown the potential increases that ETC is capable of in a very short time. Investors are now keen to see how the ETC performance will continue to change. As ETC has broken through the $10 ceiling that it was previously struggling to get above, the cryptocurrency is looking much more scalable.
Now that the upgrades are being pushed through in July 2021, Ethereum Classic is set to start performing better in the market, in a similar way to Ethereum. Experts are expecting to see the coin rise to a completely different level. Ethereum Classic has made a statement about the upcoming upgrade:
‘Dear #EthereumClassic node operators, this is a friendly reminder that you are awesome and the Magneto hard fork is scheduled to occur in ~4 weeks. Please update your node software before block 13_189_133.
#Cryptocurrency #ETC #Crypto’
- @eth_classic, Official Twitter account of Ethereum Classic
A surge in price in the months following the July update is predicted for ETC, given the recent upswing and the boost from the proposed Magneto update. This surge should then carry ETC into a bullish trading period in 2022 and possibly continuing into 2023.
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Ethereum Classic Trading Forecast for 2021
The cryptocurrency market has struggled during the bear market that took over in May 2021. However, the overall ETC performance has been very promising. ETC is up 900% this year to date. This is a far better performance than most of the other top twenty cryptocurrencies have been able to manage following the market downturn.
Given that this is a very robust performance from ETC experts are confident that there will be some upswing over July. Given the proposed upgrade to the Ethereum Classic system, many analysts are proposing that ETC will see a surge far greater than the previous all-time high of $177.
In the short term ETC is expected to remain around the $50 mark, however late July and August should see a significant positive turn for this cryptocurrency. Investors are looking to buy ETC while the price is still low, with Ethereum Classic reporting on the buying trend. Ethereum Classic retweeted Digital Currency Group’s announcement that they plan to buy $50M shares of Ethereum Classic, with the comment:
‘That's what's called "buying the dip." $ETC’
- @eth_classic, Official Twitter account of Ethereum Classic
This shows that large scale investors are already looking to capitalise on the predicted surge later in 2021.
Experts are signalling that the remainder of 2021 will see an increase in the ETC price, but some are predicting a low estimate of $83 by December 2021.
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Who is behind Ethereum Classic?
Ethereum Classic is managed by several teams of people working to keep ETC decentralized. One of these is Ethereum Classic Labs, which was founded by James Wo. The CEO of Ethereum Classic Labs is Terry Culver who oversees the core team of digital developers.
The original founders of the blockchain protocol used by Ethereum Classic were Vitalik Buterin and Gavin Wood. Both founding developers have since stepped back from the company. There are now distributed teams of node operators communicating and pushing forward the development of Ethereum Classic.
What is Ethereum Classic?
Ethereum Classic is a globally distributed platform that uses smart contracts on an open-source blockchain. It was based on the bitcoin protocol designed by Satoshi Nakamoto and is a similar protocol for mining cryptocurrency while completing transactions. All records of these transactions are stored publicly on the blockchain itself.
These factors together form the virtual machine that is Ethereum Classic; a decentralized protocol for generating currency and completing global transactions using algorithms. These are done in a completely autonomous way, outside of the restrictive world of traditional centralized banking.
The native coin of the Ethereum Classic blockchain uses the token ETC. This is a cryptocurrency and can be used to pay transaction fees on the system as well as being traded for profit. It can be exchanged for goods and services and the scope of this grows as market adoption of ETC increases.
How does Ethereum Classic compare to the market?
Ethereum Classic is currently ranked 19th in terms of market capitalization at the time of writing. This seats ETC comfortably in the top twenty cryptocurrencies currently on the market. The market cap of Ethereum Classic is currently just over $7.1B, showing room for exceptional growth over the coming years.
Should I invest in Ethereum Classic in 2021?
Given the predicted trajectory for ETC, this crypto coin is looking like a strong investment for 2021. There is a surge predicted to follow the May 2021 update.
The projections for 2021 and 2022 are positive. Investors are expecting ETC to increase in price and join a price bracket closer to its offshoot, Ethereum. This would take ETC above the $1000 mark, and provide exceptional returns for those investing in 2021.
Is Ethereum Classic still going to go up?
Market analysts are confident that Ethereum Classic will see prices rise during the end of 2021. Many are expecting the ETC price to experience its largest surge yet during the two months following the Magneto update.
The volatile trading pattern recently has made the timeline difficult to predict but experts are confident that trading will form an upward trend during the next quarter. The current trading pattern indicates that the price will not fall further during 2021. This is predicting a bull market to begin in the months following July 2021.
What will ETC prices rise to in 2021?
Analysts are signalling that ETC will go up in 2021. The most conservative estimates are predicting the price to go up from $56 to between $60 and $83 during the second half of 2021.
Some experts feel that the Magneto update will cause ETC prices to skyrocket by September 2021, breaking past the $1000 mark.