Ethereum Classic has seen massive growth lately, with a 1,127% YTD return for investors. This despite the 51% attacks not so long ago. In addition, ETC has also outperformed Ethereum [ETH] several days in May Now that Ethereum is moving towards Proof of Stake (PoS), the question arises whether ETC could become the largest Proof of Work (PoW) network.
As underlined in a recent Etherplan blog, ETC will not only be the “biggest PoW” but also set monetary policy and become the largest programmable blockchain in the world. So how does ETC plan to achieve this goal? The answer can be found in his “positioning logic”.
Source: Etherplan
ETC is currently the sixth largest PoW in the world. However, once ETH moves to PoS, it will pave the way for ETC to achieve its aforementioned goal. The other PoW projects are not programmable as their blockchain cannot be programmed on the base layer, only via layer 2 systems or via PoS. This is what Ethereum is trying to do.
Source: Etherplan
Additionally, the blog highlighted two opportunities that will enable ETC’s exponential growth,
“1. Ethereum 1.0 will migrate to Ethereum 2.0 very soon, leaving the space open for ETC to fill it
2. Since Bitcoin and the other POW blockchains are non-programmable at the base level due to their UTXO model, ETC will be much more versatile and useful at the base level.”
Also, if the blockchain industry is fully layered, ETC will become the second largest PoW blockchain in the world.
Source: Etherplan
Interestingly, the blog characterized ETC as “programmable digital gold” due to its identical monetary policy to Bitcoin. Additionally, based on actual gold’s market cap, the team expects its value to reach $11.2 trillion by 2029.
Now, comparisons between bitcoin and gold have remained strong over time. However, these may also affect ETC’s own forecasts. If BTC surpasses $125,000 in 2021, Etherplan says the value of ETC will go from $60 to $1,000 by the end of 2021. Needless to say, these are optimistic forecasts. However, the following aspects can play a role here:
“1. BTC/ETH usually leads the rally and then ETC follows.
2. ETH will migrate to ETH2 shortly after December 2021.
3. ETC will outperform DOGE, BCH and LTC as it is much more versatile and useful with smart contacts on the base layer.”
Based on the value of gold in 2029, BTC could likely reach a 50% and 100% valuation versus gold by 2025 and 2029, respectively. This would push the value of BTC to $259,000 and $550,000 during the bull cycle.
If the prediction of ETC becoming the largest POW smart contracts blockchain in the world and the second largest POW network at the base level next to Bitcoin comes true, ETC could be valued at 25% and 50% of BTC in 2025 and 2029, respectively.
Therefore, ETC could have a target price of around $8,700 to $33,000, the blog claimed.
How is ETC doing now?
While it is no surprise that the current performance has been driven by developments in Ethereum, ETC is also gaining market attention. After ETH moves to PoS, PoW miners will be banned from the system.
This was why Ethereum co-founder Vitalik Buterin asked these miners to switch to ETC, calling it the “next best PoW in crypto.”
As Ethereum approaches ETH 2.0, there is no doubt that its impact will be felt across the ETC market.
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