The cryptocurrency market is no stranger to sudden rallies, but few have been as striking recently as the surge in Ethereum Classic (ETC). In just five days, ETC skyrocketed by 68%, and over a two-week period, its price climbed an impressive 124.2%—a rally closely tied to the broader excitement surrounding Ethereum’s long-anticipated network upgrade, "The Merge."
While Ethereum (ETH) remains the primary focus of investor attention due to its shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), Ethereum Classic has unexpectedly emerged as a major beneficiary of this transition narrative. Despite being a smaller player in the blockchain ecosystem, ETC’s recent momentum reveals growing interest in PoW-based alternatives amid shifting market dynamics.
Why Is Ethereum Classic Gaining Momentum?
At its core, Ethereum Classic is the original Ethereum blockchain that continued operating under the PoW consensus mechanism after a 2016 hard fork led to the creation of today’s dominant Ethereum chain. While many viewed ETC as a legacy project, recent developments suggest renewed confidence in its long-term viability.
One of the most telling signs of this resurgence is the surge in hash rate—a key indicator of network security and mining activity. On July 28, ETC’s hash rate reached an all-time high of 26.773 TH/s, according to Bitinfocharts. By the time of writing, it had climbed even further to 31.72 TH/s, marking a 23.9% increase since the beginning of the month.
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This spike indicates that more miners are dedicating computational power to secure the Ethereum Classic network—likely due to increased profitability or ideological alignment with PoW principles. With Ethereum abandoning mining post-Merge, some miners appear to be redirecting their resources to PoW-friendly chains like ETC.
On-Chain Activity and Market Metrics Show Strength
Beyond hash rate, other on-chain metrics reinforce the bullish case for Ethereum Classic:
- Market Cap Surge: ETC’s market capitalization jumped from $3.64 billion on July 23** to over **$5.39 billion, a 46.5% increase.
- Active Addresses Growth: The number of daily active addresses rose from 66,200 on June 28 to approximately 97,400 by late July, reflecting a 62.6% monthly increase in user engagement.
These figures suggest not only speculative interest but also growing real-world usage and network participation—positive signals for any blockchain aiming for long-term sustainability.
However, it's important to put these gains into context. When compared to Ethereum’s dominance in decentralized finance (DeFi), ETC still lags significantly.
Ethereum vs. Ethereum Classic: A Tale of Two Blockchains
As of this writing, Ethereum leads the DeFi ecosystem with a total value locked (TVL) of $56.62 billion**, according to DeFiLlama. This dwarfs Ethereum Classic’s TVL, which stands at just **$250,419—less than 0.5% of one percent of ETH’s figure.
Clearly, ETC is not competing with Ethereum in terms of smart contract adoption, developer activity, or ecosystem maturity. However, its value proposition lies elsewhere: ideological purity, decentralization, and commitment to Proof-of-Work.
In fact, Ethereum co-founder Vitalik Buterin himself acknowledged ETC’s unique position:
"If you want to reject Proof-of-Stake, we won’t reject you. There’s Ethereum Classic—it’s the original Ethereum. It’s a very popular community, and I think they’ll definitely get support from Proof-of-Work fans… If you like Proof-of-Work, you can use Ethereum Classic. It’s a very good blockchain."
This endorsement—even if neutral in tone—lends credibility to ETC’s continued existence and resonates strongly with crypto purists who value immutability and miner-driven consensus.
Can Ethereum Classic Sustain Its Rally?
The central question now is whether this price surge is sustainable or merely a short-term speculative wave fueled by FOMO (fear of missing out) and spillover hype from Ethereum’s upgrade.
Several factors suggest cautious optimism:
- Miner Migration: As Ethereum transitions away from mining, many PoW miners are seeking alternative blockchains to deploy their hardware. ETC is one of the few major PoW chains capable of absorbing this influx.
- Community Resilience: The ETC community has remained committed despite years of underperformance relative to ETH. This loyalty may translate into sustained support during periods of market volatility.
- Security Improvements: Higher hash rates reduce the risk of 51% attacks—a historical vulnerability for smaller PoW chains.
Yet risks remain:
- Limited institutional interest
- Sparse DeFi and NFT ecosystems
- Ongoing perception as a “legacy” chain
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For ETC to maintain momentum beyond the current hype cycle, it must demonstrate utility beyond being a "backup" PoW option. Potential paths include expanding enterprise adoption, improving developer tooling, or integrating with Layer-2 scaling solutions.
FAQ: Understanding Ethereum Classic’s Surge
Why did Ethereum Classic’s price go up so quickly?
Ethereum Classic’s price surge is largely driven by increased interest in Proof-of-Work blockchains ahead of Ethereum’s transition to Proof-of-Stake. Miners and investors seeking alternatives have turned to ETC, boosting demand and network activity.
Is Ethereum Classic the same as Ethereum?
No. Ethereum Classic is the original Ethereum blockchain that continued using Proof-of-Work after a 2016 fork. Today’s Ethereum (ETH) evolved from a fork intended to reverse the effects of a hack on The DAO project.
Can Ethereum Classic overtake Ethereum?
Unlikely in terms of market cap or DeFi dominance. However, ETC can carve out a niche as a secure, decentralized PoW chain favored by miners and decentralization advocates.
What makes Ethereum Classic valuable?
Its value stems from its commitment to immutability, active mining community, rising network security (hash rate), and status as one of the few remaining major PoW smart contract platforms.
Should I invest in Ethereum Classic?
As with any cryptocurrency, investing carries risk. While ETC shows promising signs of growth, it lacks the ecosystem depth of larger blockchains. Investors should conduct thorough research and consider portfolio diversification.
How does The Merge affect Ethereum Classic?
The Merge reduces competition for miners by removing Ethereum from the PoW landscape. This creates an opportunity for ETC to absorb displaced mining power and gain traction among PoW supporters.
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Final Thoughts: A Niche Player with Renewed Relevance
Ethereum Classic’s 68% rally isn’t just noise—it reflects a broader shift in market sentiment toward Proof-of-Work resilience in an increasingly PoS-dominated world. While it may never rival Ethereum in scale or innovation, ETC serves as a living testament to blockchain immutability and decentralization.
For investors and observers alike, the key takeaway is clear: even legacy projects can experience rebirth when aligned with powerful macro trends. Whether this momentum lasts will depend on ETC’s ability to evolve beyond nostalgia and deliver tangible utility in the years ahead.
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