500 Interactions, 2 today
Despite its protection concerns, the “original” Ethereum outperforms ETH as it rises to never-before-seen USD heights.
This week, the “original” but ironically “wrong” Ethereum and Telcoin (TEL) are heading a new altcoin boom. Bitcoin (BTC) supporters have also called it quits.
Ethereum Classic (ETC), a favourite of Digital Currency Group member Barry Silbert, has increased by 300 percent in a week.
ETC hits $180: Bull market or “casino market”?
Altcoins are handing the torch to each other in the current incarnation of the 2021 “alt season,” as investors seek the best returns.
This year has also seen an unusual change in consumer emphasis from the use case of a token to the society around it. This was exemplified by Dogecoin (DOGE), the 2021 high flyer, which has raised over 7,000 percent since January.
Memes and other viral causes seem to be pushing progress in this week’s round of breakouts as well, with ETC bursting in value and no discernible improvements. TEL reaped the benefits of a strong layer-2 migration.
“Casino market hypothesis,” Blockstream CEO Adam Back responded during a Twitter debate about why the altcoin market was delivering such results.
As previously mentioned, Back attributed DOGE’s increase in fortunes to the luck of the draw.
Others also indicated that investing in ETC, in particular, could be not only short-sighted but also dangerous: in its four-year lifetime, the blockchain has undergone many 51 percent attacks, indicating a lack of stability and durability that Bitcoin and the “newer” Ethereum do not have (ETH).
Price volatility was also recorded, with ETC trading at a giant 50% premium on Coinbase as prices took off on Wednesday.
Nonetheless, fans were unperturbed and appeared not to be in a hurry to exit their positions.
Last week, dad told me he bought $ETC at $30 and I told him he bought the wrong Ethereum and there’s no usecase or adoption at all.
He sold it immediately after and it’s now at $140.
Gonna disown myself first before he gets to do it.
— Squeeze (@cryptoSqueeze) May 7, 2021
Silbert himself reminded Twitter followers of ETC’s price journey since inception in 2016 — from $0.50 to over $180, and a three-year high against Bitcoin.
Asked if he was “happy” with what had happened, Silbert said that Thursday had been a “good day.”
ETC is now the 13th largest cryptocurrency by market capitalisation, having started the year in 38th place. Spillover from increased interest in ETH is a persistent subject when it comes to its legacy parent, with data from sentiment resource TheTIE revealing that for the first time, ETH tweet volumes exceeded those affecting BTC.
“Classic” altcoins emerge from hibernation
Meanwhile, as the week comes to an end, Bitcoin is repeating steps of a distinct, less desirable kind. After failing to break through resistance near $60,000 once again, BTC/USD was back at $56,000 on Friday, having fallen to lows of $55,400.
Despite the relative lack of upside, long-term market players remain firmly committed to the bull market mindset.
“BTC, ETH and the whole market keep pumping and pumping, unreal,” Simon Dedic, managing partner at blockchain advisory and investment firm Moonrock Capital, summarized on Thursday.
“After 2 years of bear market, you learn to appreciate every single day of a bull market. Don’t take this market for granted. Stay humble, stay thankful, stay rational.”
As Cointelegraph reported, many altcoins on the market longest of all have seen a return to form in recent weeks.