Altcoins like Bitcoin Diamond and Ethereum Classic seem to have come out from hibernation, with some recording weekly gains in excess of 300%.
What Happened: Leading this week’s crypto rally was Ethereum Classic (ETC), which surged 340% in seven days from $35 to $154.
Formed as a result of a contentious hard fork of the Ethereum blockchain, development and utility of the chain itself has been called into question despite Ethereum Classic being the “original Ethereum.”
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Its creators and miners moved on to the Ethereum blockchain, leaving Ethereum Classic far behind in terms of market cap.
Since July 2016, the coin traded between $2 and $33 dollars, until this week’s rally added $13 billion to its market cap making it the 13th largest at the time of writing.
So looks like $ETC is up 300% this month (Compared to #Ethereum's tiny 30% return in comparison).
— Tone Vays (#ActivateTaproot) (@ToneVays) May 6, 2021
- #EthereumClassic was 51% attacked NOT just once, but 3 times last year...
Since I'm just a dumb #Bitcoin Maxi, can someone explain the incredible utility and usefulness of $ETC ??? pic.twitter.com/WAKZPCSolI
A similar situation was observed in the case of Bitcoin Diamond (BCD), which was formed as a result of forking the Bitcoin blockchain.
Although the cryptocurrency is limited in its utility, a 617% increase in trading volume overnight suggests that traders were unconcerned as the coin hit a three-year high of $8.43.
Quite upsetting when retail is led astray by Ethereum Classic and Bitcoin Diamond because of the names. .0245627520171E+34;
— Matt Finestone | 3body.eth (@finestonematt) May 6, 2021
Platforms that list them should make very stark ** tool tips to inform users. pic.twitter.com/G4rgEOo3o4
What Else: “I know where the DOGE money is going next,” said Barry Silbert is the CEO of Digital Currency Group, a parent company of Grayscale Investments (OTCMKTS: GBTC), echoing a market-wide perception that “new retail money” was driving the massive price surges in these altcoins.
Robinhood only supports trading of Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin and...Ethereum Classic
— Barry Silbert (@BarrySilbert) May 4, 2021
I think I now know where the DOGE money is going next https://t.co/wH72c7Hi6O
While some traders raised concerns about these “misguided” crypto purchases by new retail investors, others believed that it might not necessarily be a bearish signal given the prevailing market conditions.
Ki Young Ju, CEO of on-chain analytics platform Crypto Quant said on Twitter, “Retail FOMO is not a bearish signal anymore in this irrational market. It could be an alpha if we find how retail investors move.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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