Ethereum Classic Hit a New Record—How High Will It Go?
Investors are eager to know how high Ethereum Classic will go following the recent crypto crash. Here's what could drive the crypto.
Feb. 3 2022, Updated 6:30 a.m. ET
India’s move to tax cryptocurrencies and launch an official crypto-based rupee has investors excited about the prospects of cryptocurrencies. Further bolstering confidence in cryptos is Facebook parent’s Meta Platform joining the Jack Dorsey-led COPA. As a result, Ethereum Classic's (ETC) price prediction has come into focus. How high will ETC go?
Ethereum Classic hit a record high above $176 in May 2021, grabbed investors' attention—the crypto had started the year at around just $5. After a rush to take early profits, however, the crypto dropped 85 percent. And after rising about 10 percent over the last week, it's currently trading at about $27.
How Ethereum Classic started
It's essential to know the history between Ethereum and Ethereum Classic. In 2016, Ethereum’s blockchain was hacked, resulting in over $50 million in Ether being stolen. Developers voted to update the technology and “revert” the blockchain to return the stolen crypto to its owners.
A significant portion of the currency holders didn’t agree with the controversial move and decided to create their own cryptocurrency, Ethereum Classic. However, because only a small portion of the blockchain stayed with Ethereum Classic, ETC hasn’t seen the same success as ETH—ETC’s historic peak is just below $180, whereas ETH has come close to hitting $5,000.
Why Ethereum Classic is going up now
Ethereum Classic’s 10 percent rebound can be attributed to several factors. The rush to buy the dip after the most recent crypto crash is providing some lift for ETC, as is the rush to find the next Ethereum. Investors are diversifying with Ethereum-like cryptos, such as Ethereum Classic, Solana, Cardano, and Avalanche.
Where Ethereum Classic will end up
Fans want to see Ethereum Classic at least reclaim its $176 peak in 2022. And some think the crypto has the potential to be worth as much as Ethereum, which is now just under $3,000 after crashing from $5,000.
ETC's future will depend on the adoption of the Ethereum Classic blockchain, and its prospects are promising. Demand for blockchain resources amid the NFT, DeFi, metaverse, and Web3 crypto buildout boom is growing, and Ethereum alone can’t meet the demand. Furthermore, Ethereum Classic stands to enjoy an important distinction as the only major proof-of-work blockchain that supports smart contracts after Ethereum's shift to proof-of-stake.