Ethereum Classic (ETC) Gets Swept up in Crypto Market Rout

The relentless sell-off in the cryptocurrency market persists, and recent market darling Ethereum Classic (ETC) is no exception. After bolstering its value by approximately 30% in the last month or so, the Ethereum-spinoff has shaved 16% from its value in the last 24-hour period to a market cap of $1.67 billion.

ETC had been on the tear of late amid dual listings on U.S. cryptocurrency exchanges Robinhood and Coinbase, the latter of which is making trading available in the coin both for institutional and retail investors. A couple of days ago, the Ethereum Classic Twitter page said the coin was “killin it with transaction volume,” pointing to a chart in which the number of transactions surpassed 65,000 on Aug. 5.

Meanwhile, the ETC exchange listings give individual investors “easy access” to Ethereum Classic, something that until now has been lacking, as cryptocurrency trader Brian Kelly pointed out on CNBC.

Ethereum Classic’s newfound popularity, today’s declines notwithstanding, could have something to do with its lower market cap versus Ethereum (ETH), which investors could view as an opportunity for more growth, at least in the near-term.

Ethereum and Ethereum Classic boast similar features tied to functionality, but ETH is more mature than the forked coin, as evidenced by the number of developers that are dedicated to bolstering the scalability of the network. ConsenSys Capital Co-Founder’s Andrew Keys previously stated that the Ethereum community boasts “30 times more devs than the next blockchain community.”

But as Kelly points out, the number of developers dedicated to Ethereum Classic is on the rise, which is likely to lead to an expansion of the platform. According to the website, Ethereum Classic’s engineering team is currently working on projects across “Classic Geth, Emerald SDK/Platform, SputnikVM, and Sidechains.”

Price Action

The ETC rout comes on the heels of massive gains in the coin leading up to Coinbase’s debut of the cryptocurrency. Even as the exchange was testing the coin, ETC climbed from less than $15 on Aug. 2 to $18.66 on Aug. 6, bolstering its value by nearly 25%. Ethereum Classic hasn’t surrendered all of those gains despite the fact that it’s off its best levels of August.

But the excitement was not enough to sustain the price gains amid the overnight response to the SEC delay on a VanEck/SolidXbitcoin ETF decision.

Source: CoinMarketCap

Meanwhile, Ethereum Classic debuted on Robinhood Crypto on Aug. 6, where traders can access the coin for zero commission. Next traders want to know when Gemini exchange will similarly add Ethereum Classic to its roster.

Featured image courtesy of Shutterstock.

Gerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.

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