Why Ethereum Classic (ETC) is rising in price and what its prospects are – expert opinion by Crypto-Upvotes
Crypto-Upvotes experts told about investments in ETC and estimated probability of miners’ transition to Ethereum Classic mining
Cryptocurrency Ethereum Classic (ETC) shows significant growth. Having risen by 45% in the last month alone. On July 28, ETH reached $34, gaining more than 23% in one day. Ethereum Classic is currently ranked 20th in cryptocurrency capitalization at $4.61 billion with a daily trading volume of $5.26 billion.
Rise in price of coin began after announcement that main Ethereum network will switch to new operation protocol (Proof-of-Stake) at the end of September. This transition will mean the end of ETH mining. Due to this event, and because Ethereum Classic blockchain uses the same mining algorithm. All ETH miners can start migrating to ETC.
Ethereum Classic cryptocurrency appeared in 2016 as a result of a hard fork of main Ethereum network. Because reason for blockchain forking was hacking of DAO investment project. And the theft of about 3.6 million Ethereums from it, which at that time amounted to about $60 million. Developers of Ethereum Foundation project conducted a blockchain split to compensate for losses.
Interest of big players grows in ETC
Ethereum Classic began to appreciate after announcement that ETH will switch to Proof-of-Stake (PoS) in fall. Ethereum Classic will remain its only major blockchain with smart contracts after main network switches to a different algorithm. Which run on classic PoW and Ethash mining algorithm.
Miners will migrate to the ETC network because of specific ASIC chips. Migration of miners will theoretically strengthen security of Ethereum Classic network, which has been attacked several times. Developers of fork are counting on growing interest of smart contract owners, who will not want to migrate to PoS.
ETC has been showing growth for the last few days. It is very likely that the volumes we are now seeing from the big players and companies. Who are buying up the asset in order to further hold on to it.
Our Crypto-Upvotes experts have noticed that mining pool Antpool. Which is affiliated with mining equipment maker Bitmain. It has invested $10 million in Ethereum Classic ecosystem. It also intends to accept accept ETC for payment for its products. Our experts say that in bull market ETC price with support of corporations can go up to $100+.
What will be effect of Ethereum move to POS for ETC
For holders of large scale crypto farms, ” classic” PoW algorithm is more profitable. Than new PoS, to which Ethereum main network is migrating. Traders take into account in their estimates of cryptocurrency that transition to PoS in Ethereum Classic is not planned and mining in this system will be profitable for all major mining players.
It’s too early to talk about mass transition of miners from Ethereum to Ethereum Classic. But interest in ETC has clearly emerged. This is evidenced by the local maximum hash rate of Ethereum Classic network. In any case, the vast majority of GPU miners will stay on ETH until its transition to PoS.
Ethereum and Ethereum Classic mining has clear advantages over BTC mining. Because net profits are higher due to lower power costs compared to ASIC equipment, especially during a bear market.