It seems speculative investing is back on the menu in the crypto world, even after a dreadful bear market. Once again, investors are flooding into coins with quick gain potential. Today, the lucky winner is Ethereum Classic (ETC-USD).
The network is benefitting from a comment by Ethereum (ETH-USD) founder Vitalik Buterin. His endorsement of the chain as an alternative to proof-of-stake has preceded a 15% upward swing for ETC crypto prices. Also benefitting the network is news of a $10 million investment from crypto miners seeking refuge from the Merge.
While Buterin is not active at all in the development of Ethereum Classic, he is one of the minds behind both it and the larger Ethereum network. He and eight others launched the main Ethereum chain in 2015. It wasn’t until the network was hacked in 2016 that the chain was forked in two. Those against changing the network’s infrastructure remained on the original chain, rebranded to Ethereum Classic. The forked chain became the Ethereum we know today.
Nowadays, the two networks look entirely different. First of all, Ethereum is massive in comparison to its Classic counterpart. ETH is the second-largest coin by market capitalization, whilst ETC is the 21st. Ethereum also boast 4,000 dapps to Classic’s few dozen.
However, for the traditionalist blockchain user, Ethereum Classic provides a viable home base. Since it refuses to make changes to the protocol, it will remain a proof-of-work network indefinitely. Ethereum, on the other hand, is transitioning to proof-of-stake. Proof-of-work is a much more energy intensive process for validating data, certainly, but some entrepreneurial crypto fans see the mining as more lucrative and worthwhile than staking.
Buterin certainly doesn’t see eye to eye with Ethereum Classic. If he did, there would never have been a fork, and ETH wouldn’t look so different from ETC. However, he is extending an olive branch to the network today.
Ethereum Classic Prices Soar Thanks to Vitalik Buterin, AntPool
Ethereum Classic isn’t making headlines for any huge upgrades, given its dedication to remaining true to the original protocol. But, it does benefit from a name-drop by the biggest celebrity in blockchain. Certainly, a new investment from a crypto mining company doesn’t hurt, either.
At a recent speech, Buterin gave users an update on the coming Merge upgrade. Slated for a September release, it will transition Ethereum permanently from proof-of-work to proof-of-stake. The upgrade will make Ethereum even more distinguishable from Ethereum Classic, and it will prevent crypto miners from being able to hash out any more ETH to sell.
While this might anger the miners who have made big money off of ETH over the last six years, Buterin says not to worry. The Ethereum founder points these miners to the Ethereum Classic chain for all their proof-of-work needs. While the comment was met with giggles from Ethereum users, who see proof-of-work as an outdated tech, Buterin reiterates the consensus mechanism still has its uses, and Ethereum Classic is “a totally fine chain” for them.
At least one company is taking Buterin up on his suggestion. Since the speech, crypto mining company AntPool announced a $10 million investment in the Ethereum Classic network to support operations. The investment will push performance enhancing features for the network, and reports suggest AntPool could invest more if it goes well.
The ETC crypto is getting hot on all of this news. Today, the coin is gaining 8%. Trading volumes continue to surge as well; with $2.7 billion worth of ETC trading hands today, volume is up 200% over yesterday.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.