After a rough 2018, Ethereum Classic (ETC) is showing signs of rallying — maybe even a correction.
One positive sign for the token is a marked increase in the number of daily transactions.
Today, ETC is at almost 60K transactions.
Ethereum Classic $ETC is off to a successful start processing nearly 60K transactions today. (No 300k fugazi)
— Classic is Coming (@ClassicIsComing) January 3, 2019
While this doesn’t approach the Jan 2018 high of over 100K transactions, it is certainly a step in a positive direction for Ethereum Classic, which hasn’t seen over 60K daily transactions since Aug 2018.
Ethereum price charts have been rising steadily, as well. After hitting an all-time low of below $3 USD mid-December 2018, ETC is now up to $5.10 as of this writing. This price is not yet over the five week EMA, but it is progress.
Ethereum Classic was hit harder than most currencies during the 2018 extended bear run. The cryptocurrency experienced not just absolutely terrible price fluctuations, but also the crushing loss of several key community players during the course of the year.
The worst of these was the shutdown of leading Ethereum Classic development team ETCDEV in early December. This team’s primary purpose was network development and advancement across the ETC blockchain. Specifically, ETCDEV maintained Classic Geth, ETC’s main client. It additionally contributed to projects such as Emerald, Emerald Wallet, and SputnikVM.
The singular reason for the cessation of its operations was lack of funding in the extended tough market cryptocurrency found itself in. ETCDEV struggled to continue providing services to the ETC community, even reaching out to investors and the community as a whole to request funding. These efforts were unsuccessful.
The loss of ETCDEV caused ETC prices to fall even further, over 13 percent in 24 hours. This, combined with the bear market, led to a very poor outlook. However, other Ethereum Classic development teams do exist and have been working hard to pick up the slack. These development teams include IOHK Grothendieck, ETC Labs, ETC Cooperative, and Ethereum Commonwealth.
ETC has been a long-time possible contender for Internet of Things (IoT) application development. IoT technology and, in particular, its marriage to blockchain applications, is considered by many to be the next big step forward for both industries.
Ethereum Classic, with its entirely decentralized and immutable blockchain, appeared to be a great pick for compatibility with IoT developers. However, ETCDEV was in charge of ensuring IoT compatibility. Not only did the team fail to meet the Nov 20, 2018 deadline, the team also neglected to ensure proper management of the entire project — including a failure to inform key stakeholders of delays and roadblocks encountered throughout the project.
Ethereum Classic is now led by a different team, one with a vested interest in the success of the ETC blockchain. This switch was not made without controversy. However, given the crushing mismanagement previously experienced by the entire blockchain, this may be the best thing that has ever happened to the ETC blockchain.
If fundamentals say anything, ETC may well be in for a decent price correction in the weeks to come.
Think ETC is in for a recovery? Let us know in the comments below!
Images courtesy of Twitter, Shutterstock.
[Disclaimer: This article is not financial advice and should not be taken a such.]