A Performance of Ethereum Classic
A performance of Ethereum Classic has not been any different from other cryptocurrencies this week. Its price fell more than 10% over the last three days. Previously, ETC’s price rose 10% a day after Ripple’s partial victory in its legal battle with the U.S. Securities and Exchange Commission on July 13th. However, it’s back to the same price since then. ETC’s price action in the first quarter of this year was praiseworthy, but the subsequent two quarters showed a shoddy performance. Let’s see if it can still attract investor attention.
However, the network has been losing popularity from a long-term perspective. Speaking of popularity, AI has really taken off this year, with ChatGPT leading the charge. Perhaps we can leverage the power of AI to find out what the future has planned for ETC. I asked ChatGPT about Ethereum Classic, and the interaction was quite interesting. The initial plan was to establish the depth of the AI before going deeper into the type of information that I wanted to pursue.
The first question requested ChatGPT to provide a detailed and concise explanation of Ethereum Classic and its fundamentals. Here’s the response:
“Ethereum Classic is based on the original Ethereum blockchain, which has been upbringing since 2015. It has a strong commitment to immutability, making it a reliable and secure platform for storing and transferring digital assets. Ethereum Classic has not undergone any hard forks or major upgrades since the split from Ethereum in 2016, which could potentially cause network disruptions or create a competing blockchain. Ethereum Classic’s limited use cases and smaller ecosystem contribute to its lesser popularity compared to Ethereum.”
AI generated all the above points, but they are difficult to argue against. In other words, ChatGPT’s answers were spot on. I was curious to find out what the AI had to say about Ethereum Classic’s advantages over its more popular counterpart. It responded with the following points:
- Immutability: Ethereum Classic has a strong commitment to immutability, making it a reliable and secure platform for storing and transferring digital assets. This characteristic may appeal to users who prioritize security and decentralization over flexibility and upgradability.
- Longer track record: Ethereum Classic is based on the original Ethereum blockchain, which has been upbringing since 2015. This gives it a longer track record than many other blockchain platforms and may appeal to users through value stability and reliability.
- No hard forks: Ethereum Classic has not undergone any hard forks or major upgrades since the split from Ethereum in 2016. This stability could make it a more stable and predictable platform for developers and users.
The above answers got me thinking about the kind of scenario where Ethereum Classic would achieve mass adoption. These were the brief points that ChatGPT shared. The aforementioned points highlighted some key advantages of sticking to a proof-of-work system with a heavy focus on decentralization. These characteristics would make the network and its native coin more preferable, especially in case of a harsh regulatory crackdown. Regulatory bodies, especially in the United States, have adopted an aggressive position against cryptocurrencies.
But what about Ethereum Classic’s prospects? Can it reach $1900? Unfortunately, the language-based AI algorithm could only do so much, and predictions were the limit. After having a “I will do it myself” moment, I embarked on assessing ETC’s latest price action. On April 13th, the price of ETC increased to a high of $22.47 as the cryptocurrency’s recent uptrend gathered momentum. Ethereum Classic also reacted positively to the Chappella upgrade that took place in April. The upgrade allowed Ethereum stackers to withdraw their tokens. The amount of Ethereum staked is over $39.7 billion according to data from Staking Rewards.
Let us now look at Ethereum Classic’s on-chart indicators. ETC was trading at $15.57 at press time. Both ETC’s relative strength index and money flow index rested above the neutral 50 mark, but its on-balance volume registered a decline. That doesn’t give us much hope due to the current market sentiment.
In conclusion, Ethereum Classic’s long-term prospects don’t look very bright given a minimal amount of activity on the network.
