Ethereum Classic has rocketed in price, topping $21 USD and becoming the fourth most valuable cryptocurrency. Its market cap at press time sits at $1.969 billion.
ETC Price Now at Ethereum’s 2016 Highs
At $21.30, the token is now worth about the same as Ethereum itself right before last year’s infamous DAO hack. That incident led to the hard fork which “created” Ethereum Classic, as exchanges decided to continue trading the original token.
After rising to around $3 in August 2016, ETC followed the trajectory of so many other cryptocurrencies, slumping to below $1 and staying there. However 2017 is turning all previous price trends upside-down, causing many former holders to regret selling their altcoin bags for pennies.
Ethereum Classic would be at number three if not for Ripple. The XRP token has traditionally held a high spot in market cap rankings despite its 27 cent value, thanks to the fact that its entire supply already exists. Most cryptocurrencies are mined gradually. However the circulating supply of XRP is far lower as Ripple holds most of the tokens in reserve.
Why Is Ethereum Classic So Popular Now?
So why is the “original” Ethereum so popular after so many predictions of its demise? It could partly be interest in Ethereum (ETH) itself, which now sits at $347 with a $32 billion market cap.
It probably has a lot to do with its powerful supporters as well. Investor Barry Silbert of Digital Currency Group has been bullish on Classic from the beginning. In April, his crypto investment firm Grayscale also launched the Ethereum Classic Investment Trust, which likely brought in several big spending speculators.
There is also the possibility that smart contract purists prefer ETC for philosophical reasons. Its very existence sprang from a protest against Ethereum’s hard fork to roll back the DAO incident. Blockchains, they said, should not be reversible.
ETC is also planning another hard fork in 2017, to cap its token supply. It may then become even more popular with sound money fans. Or it could result in even more tokens.
Since the DAO “attacker” (whose actions were either legal or illegal depending on your viewpoint) holds Ethereum Classic tokens, his stash is now worth about the same as when he performed the exploit.
Do you hold or trade ETC? What’s the appeal? Let’s hear your thoughts.
Images via Redbubble, GitHub