Ethereum Classic (ETC) outclasses Ethereum (ETH)

Ethereum Classic (ETC) outclasses Ethereum (ETH)

Ethereum Classic (ETC) outclasses Ethereum (ETH)

Ethereum's original blockchain token, Ethereum Classic (ETC), is recovering, rising nearly 50% in one day, allowing it to outperform Ethereum (ETH) despite the latter's "institutional appeal".

ETC, which currently occupies 16th place in the market, is up 47% in one day and almost hit $ 79. It jumped 134% in a week, and 444% in a month. Over the past year, it has appreciated by 968%. On May 5, it had hit an all-time high of $ 83.78.

For its part, ETH fell almost 3% in one day. Its appreciation nevertheless remains substantial and higher than that of ETC on an annual basis: ETH has increased by 1,465% in the last 12 months.

24-hour ETC trading volume also increased significantly, from $ 1.2 billion on May 3 to $ 11.15 billion on May 4 and to $ 13.54 billion today, which allows him to occupy the 7th place in this ranking. ETH is ranked 2nd, with $ 73.7 billion today.

Price evolution of ETC:

Barry Silbert , CEO of Digital Currency Group (one of whose subsidiaries is Grayscale Investments ), noted this price appreciation: he said he bought ETC in 2016 and noted that "$ 0.50 -> 50.00 $, it's not nothing. "

However, it is difficult to determine what are the triggers for this sharp rise and who are the buyers. Some analysts speculate that new buyers choose ETC because it is "a cheaper version of ETH".

As noted , ETC has benefited from a development update provided by the ETC Mantis project - a client written natively for Ethereum Classic. The IOHK company , at the origin of Cardano (ADA), has a Mantis team dedicated to this project, which has already deployed a testnet called "Sagano".

Retail investors are largely behind the recent success of ETH, said CoinMetrics but an "institutional change" is looming.

“Institutional investors have started entering crypto at an unprecedented rate in 2020,” analysts said, although they were slower to adopt ETH than Bitcoin (BTC). Still, "there are signs that institutional interest in ETH is starting to gain momentum."

Futures contracts of the Chicago Mercantile Exchange (CME), launched in February, is one of the main ways for institutional investors to gain exposure to cryptomonnaies according CoinMetrics. CME's ETH futures trading volume was relatively low in March, but surged in April to a daily high of over $ 500 million. “The volume of ETH still seems to be accelerating,” he said.

Additionally, according to the OKEx exchange , working with CryptoCompare , "data collected on CME ETH futures from the last months of 2020 through April 21, 2021 - coupled with evidence of large capital inflows into the CMEs. ETH exchange traded products and investment funds - paint a clear picture of increasing non-commercial demand for ETH exposure. "

The launch of staking as part of an upgrade to Ethereum 2.0 appears to be contributing to the current increase in demand. Additionally, the upcoming deployment of the EIP-1559 "appears to have the potential to strengthen ETH's overall value proposition [and] could increase the asset's attractiveness among more affluent investors."

Separately, according to digital asset manager CoinShares , Ethereum posted inflows of $ 30 million last week, bringing its total investment income under management to a record $ 13.9 billion.