Ethereum Classic has earned the crown for one of the best performing top 50 cryptocurrencies in the last 7 days after rallying by more than 30%, a performance that saw its price surge to a high of $62.27 Wednesday.Ethereum Classic has earned the crown for one of the best performing top 50 cryptocurrencies in the last 7 days after rallying by more than 30%, a performance that saw its price surge to a high of $62.27 Wednesday.ETC’s price has since experienced a slight pullback and is currently trading at $56.90.It has recovered from its June low of $32.21 on June 22 during the FUD-fueled market crash of last week.However, it is still massively discounted considering that it is a long way off from its peak price at 179.83 which it achieved in May just before the bearish market correction wiped out some of its gains.The largest catalyst for Ethereum Classic’s impressive performance is most likely the recently announced upcoming hard fork called Magneto.It will introduce various new improvements to the Ethereum Classic blockchain.The upgrade will feature four Ethereum Improvement Proposals (EIP), which were highlighted in the Berlin upgrade in March 2020.
The Magneto hard fork will be rolled out in July and the primary takeaway is that the upgrade will lower gas fees, thus making transactions much cheaper.The upgrade will also enhance the security of the Ethereum Classic blockchain.
The focus on network security is essential considering that the blockchain has suffered multiple 51% attacks in the past.If anything, the latest upgrade highlights its community’s commitment to improving the network.It also highlights the advantages of having a decentralized approach to a network whose on-chain governance enables participation through community voting.The combination of higher security and cheaper fees is perhaps an important milestone, especially for its price action.
This is because such upgrades might help the network to attract more adoption.The latter is a strong catalyst for a better price-performance for ETC because a higher market cap with a low circulating supply will boost its price.Ethereum Classic’s current performance is an indicator that some market participants are buying up ETC after realizing the potential implications of the recently announced hard fork.Ethereum Classic is undervalued only because of its limited market cap.
It currently has a circulating 116,313,299 ETC while Ethereum has a circulating supply of 116,498,179 ETH.A very small difference in the number of coins in supply.
Ethereum Classic’s $6.9 billion market cap is significantly smaller than the Ethereum market cap of $249 billion and it explains ETC’s lower price level.
ETC’s current performance shows that the news of the upcoming Ethereum Classic’s hard fork fueled enough buying momentum to overpower Bitcoin’s spell.The altcoin market tends to mimic Bitcoin’s price action.However, the peg will likely be restored after the buying reduces.This means that it is only a short time before other market factors such as FUD hand over control to Bitcoin bears, subsequently influencing ETC’s performance.
ETC’s is back above its 7-day, 25-day, and 99-day Moving averages, highlighting the recent strong bullish performance.It confirms its strong buying volume in the last two days.Its performance in the last few hours indicates that it might already be back in Bitcoin’s influence.Nevertheless, ETC’s current price level indicates some more ceiling for growth before it approaches the next resistance level at $70.Ethereum Classic’s price action YTD has been quite impressive but it looks like the cryptocurrency has a promising future ahead.Fortunately, the latest upgrade might just be what it needs to get there..
