Ethereum Classic has seen massive growth of late, with 1,127% year-to-date returns to investors. This, despite the 51% attacks not so long ago. What’s more, ETC also outperformed Ethereum [ETH] on several days in May. Now, with Ethereum moving towards Proof of Stake (PoS), the question is, could ETC become the largest Proof of Work (PoW) network?
As underlined by a recent blog by Etherplan, ETC will not only become the “largest PoW,” but also will fix monetary policy and become the largest programmable blockchain in the world. So, how does ETC plan to achieve this goal? The answer can be found in its “Positioning Logic.”
ETC is currently the 6th largest PoW in the world. However, once ETH moves to PoS, it will pave the path for ETC to achieve its aforementioned goal. The other PoW projects are not programmable as their blockchain cannot be programmed at the base layer but only through layer 2 systems or through PoS. That is what Ethereum is trying to do.
In addition to this, the blog highlighted two opportunities that will enable the exponential growth of ETC,
“1. Ethereum 1.0 will migrate to Ethereum 2.0 very soon, leaving the space open for ETC to occupy it
2. As Bitcoin and the other POW blockchains are not programmable at the base layer due to their UTXO model, ETC will be much more versatile and useful at the base layer”
Also, ETC will become the second-largest PoW blockchain in the world when the blockchain industry becomes fully layered.
Interestingly, the blog characterized ETC as “programmable digital gold” because of its identical monetary policies with Bitcoin. What’s more, based on the market capitalization of actual gold, the team expects its value to hit $11.2 trillion by 2029.
Now, comparisons between Bitcoin and Gold have remained strong over time. But, these may have an impact on ETC’s own projections as well. According to Etherplan, if BTC surpasses $125,000 in 2021, ETC’s value will be pushed from $60 to $1,000 by the end of 2021. Needless to say, these are optimistic projections. However, the following aspects may come into play here,
“1. BTC/ETH usually lead the rally and then ETC follows.
2. ETH will migrate to ETH2 soon after Dec 2021.
3. ETC will surpass DOGE, BCH, and LTC because it is much more versatile and useful with smart contacts at the base layer.”
Based on Gold’s value in 2029, BTC could likely reach a 50% and 100% valuation relative to gold by 2025 and 2029, respectively. This would push BTC’s value to $259,000 and $550,000 during the bull cycle.
If the prediction of ETC becoming the largest POW smart contracts blockchain in the world and the second-largest POW network at the base layer besides Bitcoin comes true, ETC may be valued at 25% and 50% of BTC in 2025 and 2029, respectively.
Thus, ETC may have a price target of around $8,700 and $33,000, the blog asserted.
How is ETC doing now?
While it is no surprise that current performances have been fueled by developments taking place in Ethereum, ETC is also gaining the attention of the market. After ETH moves to PoS, PoW miners will be left out of the system.
This was the reason why Ethereum Co-founder Vitalik Buterin asked these miners to shift to ETC, hailing it as the “next best PoW in crypto.”
As Ethereum inches closer to ETH 2.0, there is no doubt that its impact will be felt across the ETC market.