The younger brother of Ethereum, Ethereum Classic, seems to have been somewhat neglected over the past 4 months as most people have been focused on the main Ethereum network and there were not many reasons to look for alternatives. As a result, the price of Ethereum Classic (ETC) on Bitcoin markets has been decreasing continuously and currently sits at around 0.002 BTC, which is the lowest value since April 2017. It is true that ETC appreciated more than 20-fold against USD in the last year, but honestly, which cryptos did not appreciate against fiat money?
At first look, ETC’s situation does not seem to be very promising. However, further analysis might bring us to an opposite conclusion. First of all, let’s take a look at Ethereum (ETH), which is starting to have difficulties to process the ever-growing number of transactions. An interesting occurrence came after the game CryptoKitties, which runs on the Ethereum network and allows users to trade their kitties for Ether, became popular. A recent article on the BBC stated:
“According to ETH Gas Station, the CryptoKitties game accounts for over 10% of network traffic on Ethereum. As traffic increases, transactions become more expensive to execute quickly. “The real big issue is other major players looking for alternatives to Ethereum and moving to different systems.” Mr. Hileman says”
Since there are many similar games in development, we can expect Ethereum to get flooded with transactions soon, not even counting the increasing number of business users. This being said, the search for reasonable alternatives seems inevitable. What is the alternative going to be? Well, you probably guessed. Ethereum Classic has near enough the same functionality as Ethereum, so it is obviously the first candidate. If businesses and users start leaving Ethereum for Ethereum Classic, an according part of their funds will go with them. And since ETC now reaches only 3% of the value of ETH, even if only 10% of the funds are transferred, it will be a huge boost for ETC.
Another good sign can be seen from the ETC/BTC price chart, from which it is clear that the bearish trend lost its power and the price saturated at the current level of about 0.002 BTC, where it probably found its bottom. This is also relatively close to the all-time low of about 0.001 BTC, so it is reaching a very strong support level as very few people are willing to sell this low. Will we see a reversal of the trend?
As always, it is difficult to make any predictions. However, it seems quite likely that Ethereum Classic will profit significantly from the upcoming problems of its big brother.
This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.
You may be interested
Iceland’s Industry to Shift From Crypto Mining to ‘Pure Blockchain Business,’ Insiders SayBrian Evans - Sep 23, 2018
Iceland is expected to shift from crypto mining to “pure blockchain business,” claims chairman of a local data center provider
Hodler’s Digest, September 16-23: Elon Musk Wants Advice on Twitter Crypto Scammers, the US SEC Wants Comments on BTC ETFsBrian Evans - Sep 23, 2018
Elon Musk wants those pesky Twitter crypto scammers gone, and Japan suffers yet another crypto exchange hack — read more in this week’s Hodler’s Digest
Bitcoin Price Nears $6,800 Resistance as Crypto Market Records Large GainsBrian Evans - Sep 23, 2018
Over the past few hours, Bitcoin has recorded a slight 1 percent increase in price, nearing the $6,800 resistance level. The rest of the crypto market recorded…