Are you wondering whether or not to invest in Ethereum Classic (ETC)? This article will help you make an informed decision.
Over a couple of years, crypto coins have become highly popular. More and more people have started viewing crypto as an important tool for trading and investing. Several cryptocurrencies, including Dogecoin, Ethereum (ETH), Bitcoin and EHC, has recorded their all-time high prices. So, is it wise to invest in ETC? Yes, its price has lately been growing. In this article, we will enlighten you on Ethereum Classic and why its price is going up.
The five reasons why the price of Ethereum Classic (EHC) is going up
EHC was created in July 2016 from a split of the initial Ethereum. This crypto is a continuation of the initial ETH blockchain as it observes the concept of the ‘code is law’ and upholds the original network. Below are some reasons why the Ethereum Classics’ price has spiked up.
1. The upgrade of the Ethereum Blockchain.
The key reason that has led to the rise of the ETC is the hard fork of the original ETH blockchain into two blockchains. The EHC, one of the diversions, is the Continuance of the initial ETH blockchain and uses the ETC as its native coin. Many Ethereum investors opt to trade on the initial ETH blockchains, making Ethereum Classic a viable alternative. The increase in demand for ETC by users has seen the crypto price increase.
2. Continuous Upgrades
Another reason that has led to the significant rise in the price of ETC is the continuation of upgrade activities on the ETC blockchain. The latest upgrades (Magneto Upgrade and Emergency upgrades) has increased trust in the stability of the blockchain.
3. To catch up with the markets
According to crypto experts, the leading cause of why the ETC coins price is rising is to catch up with the market. Many cryptocurrencies, including Bitcoin and Ethereum, have dominated the crypto market by recording a significant increase in their prices over the years. However, that was not the case with Ethereum Classic. Its price did not increase by much. Therefore, experts believe that the current ETC price hike is a natural correction of the cost as it adapts to the bulls’ market share.
4. The increased ETH prices
Over the years, Ethereum, the twin to Ethereum Classic, has reached all-time-high prices in the crypto market. Furthermore, Ethereum is the second most popular crypto digital asset after Bitcoin. And since Ethereum is used in very similar ways as Ethereum classic many people are shifting their attention to ETC because they view it as a cheaper alternative to ETH. Also, just like the ETH, ETC is available for purchase on all major exchanges. Therefore, investors view ETC as a cheaper alternative to ETH making its price go up.
5. Increased visibility in the media
The heightened visibility of Ethereum Classic on mainstream media has also contributed to its constant increase in price. More and more investors can learn of its existence and performance hence gaining its fair share in the crypto market.
Over the years, Ethereum Classic has not been doing well in the crypto market. But lately, the coin price has been going up for several reasons. One of the likely reasons for its current high price is that it continues the original Ethereum blockchain; hence is a continuation many Ethereum die-hard fans are fond of the coin. Also, both large and small investors recognise EHC potential and gain confidence in the currency thanks to the significant updates that have brought added levels of usability and security.
The Ethereum classic being a twin to the second most crypto out there-Ethereum has seen its price currently keep on going up. In addition, the increased visibility of EHC in the mainstream media has created awareness about the crypto to the potential investors. Therefore, even though cryptocurrencies are incredibly volatile assets, the future of Ethereum Classic seems bright.