Ethereum Classic (ETC) Extends Rally Amid Wider Market Slump
Ethereum Classic (ETC) was the top-performing cryptocurrency on Thursday, defying a broad market downtrend that wiped $18 billion from coin values in less than 24 hours. While there was no immediate catalyst for the rally, ETC is positioning itself as the largest proof-of-work Ethereum mining chain once ETH transitions to proof-of-stake consensus.
ETC Price Update
The price of Ethereum Classic jumped 12.2% to $6.73 in early Thursday trading, the highest since mid-July. ETC has gained more than 23% since Monday, and was virtually unaffected by the sharp pullback that began less than 24 hours ago.
Ethereum Classic outperformed bitcoin by a considerable margin, with the the ETC/BTC exchange rate climbing 13% to 0.00066629.
At current values, the Ethereum Classic has a total market capitalization of $759.5 million, putting it in 17th spot on the active leaderboard where it trails Chainlink by less than $20 million.
ETC trade volumes were reported at $870.2 million. In the spot markets, most ETC trades are executed via USDT and bitcoin, according to CoinMarketCap.
Ethereum Classic as a Platform for Dapps
Earlier this month, Ethereum Classic Labs unveiled a new initiative to help developers build and deploy new projects on the blockchain. Dubbed Studio, the program is designed to streamline adoption of ETC technical capabilities in support of new decentralized applications (dapps) and crowdsales.
The market for crowdsales has dried up significantly since the bursting of the ICO bubble last year, but dapp activity remains promising. Dappradar.com, a website that ranks decentralized applications by usage, says it tracks over 1,500 dapps on the Ethereum blockchain alone.
Dappradar says there are two ways Ethereum Classic can tackle dapp development. The first would be to persuade developers of Ethereum dapps to also support Ethereum Classic (not recommended). A better approach would be to find out what makes the Ethereum Classic unique and focus its energies on niche markets.
To that end, “One obvious answer would be the “Code is Law” mantra that underpinned the hard fork that created the Ethereum-Ethereum Classic bifurcation,” dappradar says.
Ethereum Classic says it provides low transaction fees and “tremendous stability” for launching new projects. It remains to be seen whether it can make a name for itself in this highly crowded market.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.