Ethereum Classic is a decentralized open-source cryptocurrency that operates on a distributed blockchain. It is based on smart contract technology and is distinguished by its focus on immutability and resistance to censorship.
The history of Ethereum Classic dates back to 2016 when the Ethereum network was subject to a hack. In response to this incident, the Ethereum community faced a dilemma over whether to reverse affected transactions to compensate harmed users. Without consensus, the original blockchain was split into two separate chains.
On the one hand, Ethereum Classic emerged as a continuation of the original blockchain, focusing on maintaining immutability and preserving the integrity of transactions, even at the cost of not reversing unfortunate events. On the other hand, Ethereum opted to perform a hard fork to reverse affected transactions and continue under the leadership of Vitalik Buterin and his development team.
This divergence marked the birth of Ethereum Classic as an alternative that upholds the principles of the original Ethereum blockchain while maintaining its immutable and decentralized character.
The Ethereum Classic Ecosystem (ETC)
It represents a diverse community that includes developers, users, companies, and services dedicated to leveraging the Ethereum Classic blockchain platform. This collaborative environment is focused on establishing a decentralized infrastructure that facilitates the development and execution of smart contracts and decentralized applications (dApps).
In detail, the Ethereum Classic ecosystem encompasses:
Developers: A set of developers engaged in creating software and applications within the Ethereum Classic platform, ranging from smart contracts to decentralized exchanges and digital wallets.
Users: Individuals and organizations using the various applications and services built on the Ethereum Classic platform to meet their needs.
Enterprises: Commercial entities that offer a wide range of products and services based on Ethereum Classic technology, such as cryptocurrency exchanges, digital wallet solutions, and cloud services.
Community initiatives: Community-driven projects and programs aimed at promoting and enhancing the Ethereum Classic ecosystem, encouraging active participation and collaborative development.
The Ethereum Classic ecosystem operates in an open-source environment that allows for the participation of all its members, fostering collaboration and continuous contribution to the advancement and strengthening of the platform.
How does Ethereum Classic work?
Ethereum Classic is based on a decentralized network of nodes that work together to synchronize the blockchain and validate transactions. The underlying technology employs a Proof-of-Work (PoW) consensus algorithm, where miners solve complex mathematical problems to add new blocks to the blockchain. Once recorded, transactions are immutable, ensuring the integrity of the data stored on the blockchain.
In addition, Ethereum Classic offers support for smart contracts, which can be written and executed on the platform. These contracts are codes automatically activated when certain predefined conditions are met. This functionality allows developers to create decentralized applications, including decentralized autonomous Organisations (DAO) and stablecoins.
The Ethereum Classic platform is open source, meaning developers can access the source code and contribute to its improvement and development. This encourages innovation and enables future challenges in blockchain technology to be addressed. The Solidity programming language, specially designed for this purpose on the Ethereum platform, is used to write smart contracts.
Near Future: ETC Price Prediction for 2024
The cryptocurrency market is predicted to experience a bullish rally in 2024, especially with the upcoming Bitcoin Halving event scheduled for April. Historically, Bitcoin halvings have preceded significant increases in its price, and this phenomenon has influenced the value of other cryptocurrencies, including Ethereum Classic. Although Ethereum Classic lacks a detailed roadmap, which may make accurate predictions difficult, its close relationship with Ethereum and planned upcoming scaling improvements could positively impact its price.
Ethereum is expected to implement scaling improvements, such as proto-danksharding, during 2024. These upgrades can potentially boost Ethereum's price, likely positively influencing Ethereum Classic. Typically, Ethereum Classic adopts these improvements to its blockchain within 3-6 months of their implementation on Ethereum.
Given this optimistic outlook, the price of Ethereum Classic could peak at around $100 during the year, with a projected average cost of around $48. However, the price will likely fluctuate throughout the year, with an estimated low of around $15, especially at the beginning of the year when market conditions may be more volatile.
Looking Ahead: Price Predictions for 2025-2026
By 2025, the bull market, which began in 2024 with Bitcoin Halving, is expected to continue its momentum, which could lead to cryptocurrencies reaching new all-time highs (ATH). Ethereum Classic has proven to closely follow Ethereum to all-time highs, at times surpassing it in reaching new ATHs.
With Ethereum consolidating its position as the second largest cryptocurrency and gaining popularity as a deflationary asset and in the proof of stakes, we will likely see new all-time highs during the next bull run.
Based on an optimistic prediction of a 120% increase in its all-time high, we project that Ethereum Classic could reach a peak price of $387 in 2025. In addition, we anticipate lows around $120 and an average price of around $210 during the year.
These projections are subject to market dynamics and may vary depending on several factors, but they offer an optimistic view of Ethereum Classic's potential over the next year.
By 2026, Ethereum Classic is projected to maintain an uptrend, reflecting its historical Ethereum following and participation in scaling improvements. However, given the volatile nature of the cryptocurrency market, specific price estimates vary.
A price range is anticipated for Ethereum Classic in 2026, with a projected minimum value of $253.218, a potential maximum of $422.03, and a median price estimated at $337.624.
