Why Ethereum Classic (ETC) Is Rising

Benzinga · 10/14 19:05

Ethereum Classic (CRYPTO: ETC) is trading higher by 5.17% to $19.49 Monday afternoon amid a broader surge in the cryptocurrency market, notably in Bitcoin and Ethereum exchange-traded funds (ETFs).

This uptick follows last week's political developments in the U.S., where a perceived shift toward Republican leadership—considered more crypto-friendly—boosted inflows into Bitcoin and Ethereum-related products, totaling $407 million.

What’s Happening: The primary catalyst behind this surge was the U.S. vice presidential debate, where subsequent polling indicated growing support for the Republican Party. This political environment, perceived as favorable to cryptocurrency adoption and regulation, overshadowed macroeconomic factors, according to analysts.

While Bitcoin and Ethereum were the main beneficiaries, Ethereum Classic has also gained traction as investors seek exposure to the broader blockchain space beyond the top two digital assets.

Ethereum Classic, an altcoin that shares its origins with Ethereum but exists on a separate chain due to a hard fork in 2016, has historically benefited during periods of heightened interest in its larger counterparts.

Stock Of The Day: Boeing Stock Sells Off As Support Collapses, Job Cuts Loom

The reasoning is clear: when Bitcoin and Ethereum see significant inflows and price increases, alternative cryptocurrencies like ETC often rally due to speculative interest, portfolio diversification, and renewed attention on projects with lower market capitalizations.

What Else: The spillover effect from Bitcoin’s $419 million inflows and Ethereum’s smaller but significant participation, even amid its own outflows, has lifted sentiment across the altcoin market.

Ethereum Classic, as a lower-cost alternative with strong historical ties to Ethereum, has attracted new buyers. This is especially true for investors seeking cheaper entry points in the evolving crypto market.

Additionally, the rise in blockchain equity ETFs, which saw their largest weekly inflows of the year at $34 million, further signals renewed optimism across the broader crypto ecosystem.

Investors are betting on long-term growth and development in blockchain technology, and Ethereum Classic, with its emphasis on immutability and decentralization, remains a key player in this narrative.