Amid a flurry of bullish developments for Ethereum (CRYPTO: ETH), its sibling chain, Ethereum Classic (CRYPTO: ETC), has seen a significant price surge, rising 30% in the past month. Here’s what investors need to know.
This rally coincides with major institutional interest in ETH, including daily ETF inflows surpassing $1 billion and a rumored $20 billion corporate purchase by Bitmine, fueling speculation of a spillover effect.
Ethereum Classic is the original Ethereum blockchain. In 2016, following a major hack, the Ethereum community controversially decided to perform a hard fork to reverse the fraudulent transactions, creating the chain now known as ETH.
A contingent of users who believed in the immutability of the blockchain, that “code is law”, rejected this change and continued to operate on the original, unaltered ledger, which was preserved as Ethereum Classic.
Historically, ETC’s price action is closely correlated with that of ETH. Positive news and strong upward momentum for Ethereum often trigger a “sympathy play” into Ethereum Classic. Investors, particularly those looking for a lower-priced entry point to capitalize on the broader Ethereum ecosystem’s hype, often turn to ETC.
As analysts from firms like Standard Chartered set price targets for ETH as high as $7,500, the massive capital inflows and heightened market sentiment for ETH are creating a powerful tailwind for ETC, driving its value higher as traders anticipate it will follow its larger counterpart’s trajectory.
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