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Investors staged a sale of cryptocurrencies on the last day off of the past week, ending Sunday with a drawdown of capitalization by 1.37%. Against this background, in the ranking of the top 30, the Altcoin Ethereum Classic (ETC) stands out sharply, which grew by 30% per day.
Rally ETC , the largest fork of Ethereum, takes place without corporate news.
On the five-year period of trading statistics, it is clear that the coin often issues such pumps on the eve of the growth phase of cryptocurrencies.
ETC is used by arbitrageurs, the low liquidity of the digital currency relative to ETH leads to a stronger drop in the fork at the time of sales and a lag on the wave of Ethereum growth. Since the end of June, the second largest altcoin has grown by 64%, thanks to news around the merger of the ETH 1 and ETH2 networks. On Friday, there were specific dates for the transition to PoS by the end of September 2022.
In this case, Ethereum Classic will remain the only major blockchain with smart contracts running on the classic PoW and the Ethash mining algorithm. Analysts are waiting for the migration of miners to the ETC network, due to the peculiarities of ASIC chips, the use of which is practically no other alternatives.
Theoretically, the migration will strengthen the security of the Ethereum Classic network, which has been subjected to a 51% attack several times due to the cheapness of the cost of its implementation. The developers of the fork are counting on the growing interest of smart contract owners who do not want to switch to PoS.
Both forecasts are not confirmed by statistics. The ETC hashrate has been declining since April of this year and has recently updated the lows.
The Ethereum Classic ecosystem has only two platforms, but investors are attracted by only one of them, which has lost 80% of TVL investments since April last year.
Judging by the steadily growing trend of ETC throughout the crypto winter, the digital asset is now of interest not only to arbirtrazhers but also to hedgers, which makes it an ideal option for medium-term investments until the recovery of the cryptocurrency market.
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