The past few days have been pretty eventful for Ethereum. In less than a week, the world’s largest Alt price has managed to rise from USD 2.8,000 to USD 3.5,000. Whenever Ethereum has pumped in the past, most of the time the entire altcoin scale has followed suit.
With most of the alts having a pretty decent week, the above scenario has unfolded again.
A twist in history
There was a time when it made sense to have Ethereum Classic (ETC) in your portfolio when you had Ethereum (ETH). However, this narrative has gradually become redundant.
The ETC market has lost the charm of volatility and the alt candles on the daily chart are pretty compressed. In fact, the price stagnated around its “leisurely” $ 40-70 mark even during the most recent slump in September.
The price of Ethereum, on the other hand, has been making big leaps since the beginning of this month.
While ETC’s pattern on the chart is still somewhat in line with Ethereum’s, it should be noted that ETC has been unable to keep up with Ethereum’s pace of growth.
Indeed, investors have borne the burden of stagnation in the former. For example, in the past three months, Ethereum has returned over 64% to its investors, while ETC’s numbers have only been 7%.
Ethereum’s appreciation catalysts
Ethereum’s organic growth can largely be attributed to its network upgrades and developments. In the macro framework, his development activity was fairly consistent.
Conversely, after seeing massive spikes here and there over the 2018-2020 period, Ethereum Classic’s activity on this front has been pretty nondescript. While it has seen an uptrend recently, it should be noted that it is nowhere near its previous highs.
To keep any network relevant as competition and trends change, more sophisticated versions should be introduced. Ethereum did justice to that. The network, for example, went through its London hard fork in August. The Altair upgrade is scheduled to be activated this month.
Not much is in the pipeline for Ethereum Classic, however. To make matters worse, the ETC Cooperative recently withdrew its support from the proposed ETC Treasury Department. It also stated that ECIP-1098 was no longer a viable proposal.
In addition, ether is supported by institutional actors. As recently as last week, cumulative institutional inflows were over $ 20.2 million. Unfortunately, the Ethereum Classic market lacks such support.
In fact, the dwindling interest of retail participants was also quite evident in the volume trading chart.
So if volatility continues to stay low, development activity does not pick up pace and no additional capital flows into the market, Ethereum Classic would not be able to move with Ethereum in the upcoming altcoin rally.