Ethereum Classic (ETC) is a native token in the network of the same name, which was created in 2016 as a result of a hard fork in the Ethereum (ETH) blockchain network. The use case of Ethereum Classic is therefore the same as that of ETH – to serve as a smart contract platform, and the purpose of the ETC token is to power this network.
The circumstances surrounding the birth of the Ethereum Classic are quite controversial. The idea of Ethereum’s hard fork is rooted in the Ethereum DAO hack that took place in 2016. This event resulted in a loss of more than 11 million ETH (then $ 50 million at the time) by DAO investors. The stolen tokens were eventually found, sparking a fierce battle within the Ethereum community over how best to deal with the aftermath.
One group felt that the funds should be returned to the original owners, while another argued that doing so violated the blockchain philosophy that required absolute immutability. Since the transfer was linked to the chain, this second group believes that this must remain so, even if it was fraudulent. The first group won the vote and Ethereum was hard forked, with the original chain becoming Ethereum Classic.
The Ethereum network has remained the larger of the two, but Ethereum Classic has had some success too – for example, ETC fees are lower than ETH, which is a plus for many. ETC went through a tough period in 2020 when the network was hit by multiple 51% attacks, but it managed to recover in 2021. Most Ethereum Classic predictions predict that this recovery will last for a while.
In the first half of 2021, Ethereum Classic took part in the rally that most of the cryptocurrency market went through. The price rose quickly from ~ $ 5 just before the end of 2020 to ~ $ 15 in February. By March the ETC price had fallen in the $ 10-12 zone, where it remained until April. At this point, Ethereum Classic soared, hitting its all-time high of $ 176.16 in May.
ETC survived the May crash well. The lowest price since May is $ 32.5, which it hit briefly in June. That compares to about $ 10 recorded just a few months ago, in March, when even the wildest ETC predictions couldn’t foresee such a big rebound. In late August, ETC saw another rally, bringing the price over $ 60. This is reflected in the currently mostly optimistic forecasts of the ETC.
From the beginning of May 2021 until the end of July, Ethereum Classic traded in a descending triangle pattern. Then as the market turned bullish, ETC broke out, jumping out of the support zone at ~ 35- $ 40 and rising in both price and trading volume to hit ~ $ 63 in mid-August.
There are some concerns that the recent surge is turning into a head-and-shoulders pattern, which may mean that the future price of Ethereum Classic will be lower than one might expect. From today’s perspective, however, there are no obvious factors that could affect the future value of Ethereum Classic.
Below we have compiled the most reliable price predictions for Ethereum Classic (ETC) from popular forecasting platforms.
According to WalletInvestor, the price of Ethereum Classic will rise from $ 68.58 to $ 104.469 in one year. That makes ETC a great investment. The long term earning potential is 52.33%. The forecast price for the end of 2026 is $ 273,112.
In the DigitalCoin analysis, the price of the cryptocurrency Ethereum Classic will increase from $ 68.0426 at today’s price to $ 242.5956465 over the next 5 years. It will rise to $ 112.7110128 by 2022 and will continue to grow from 2023 to 2024. Based on this forecast, Ethereum Classic is a profitable long-term investment.
In 2021, the average Ethereum Classic price will rise to $ 88.275. In 2022, the price of Ethereum Classic will increase significantly to an average of $ 126.3583333.
As can be seen from the analysis cited above, the predictions of Ethereum Classic (ETC) are rather contradicting. There is no universal consensus about positive or negative future ETC price action. In fact, the future possible growth depends on various factors: announcements, new technological solutions of the Ethereum Classic projects, the crypto environment in general, legal situation and so on. We kindly remind you that it is essential to do your own research (DYOR) before investing in a cryptocurrency.
In 5 years time, according to some ETC price predictions, 1 Ethereum Classic will be worth nearly $ 235 in 2026. There are other Ethereum Classic price predictions for 2025 that are also positive and the price of ETC is often above $ 150.
Several factors make Ethereum Classic cheaper than Ethereum. Some of these can be traced back to the series of 51% attacks on the Ethereum Classic network, which unfortunately undermined some public trust in the project. Another big factor is the lack of approval from the ETC by the original Ethereum team.
It’s hard to say whether it’s better to buy Ethereum or Ethereum Classic as most crypto investments are volatile and inherently risky. From a public trust perspective, Ethereum could be more secure. However, the price predictions for ETH coins are still largely good, which leads many people to believe that Ethereum Classic is a good investment in 2021.
You should invest in Ethereum Classic if your risk tolerance is high enough. Many investors prefer better known cryptocurrencies like Bitcoin or Ethereum, but for investors looking to diversify their crypto portfolio, Ethereum Classic is a better choice than many others.
Yes, Ethereum Classic is probably a better investment than Dogecoin, at least in the long run. Since Dogecoin is essentially a meme coin, its price depends heavily on the whims of the public: memes are forgotten. Ethereum Classic, on the other hand, has some valid fundamental data behind it, which means that the price predictions of Ethereum Classic are at least to some extent based on the laws of the market.
Ethereum and Ethereum Classic have split over the differences of opinion regarding returning the tokens to the Ethereum DAO investors after the 2016 DAO hack. While the tokens were being restored, part of the community decided that changing the blockchain to return the funds was against the principles of the blockchain. This resulted in Ethereum splitting off in a hard fork, while Ethereum Classic kept an unchanged version of the chain.
The difference between Ethereum and Ethereum Classic lies in the stricter adherence to the “original” blockchain rules. ETC supporters are of the opinion that the entries in the chain must not be changed under any circumstances. Another important point is that ETC has followed in Bitcoin’s footsteps more than Ethereum as it is the original cryptocurrency. There are halves of Ethereum Classic and a hard cap, unlike Ethereum which doesn’t have it. Also, Ethereum will soon switch to the proof-of-stake consensus protocol while the developers at ETC have not made such announcements. Note that ETC is developed by different decentralized teams – there is no Ethereum Classic Foundation managing it all.
Disclaimer: This article should not be viewed as a trading recommendation. The cryptocurrency market suffers from high volatility and the occasional random movement. Every investor should research multiple viewpoints and familiarize themselves with all local regulations before committing to an investment.
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