Since December, there’s frenzy in the digital currency market with prices of mainstream tokens skyrocketing. Bitcoin, has its increased from ¥60,000 to ¥120,000 within a week. Next are LTC and ETH, with LTC price jumping to a new high of ¥2,000 and ETH price doubled to ¥5,000. XRP, also saw its price went two-fold.
Will the price spike of ‘tier-2’ tokens, LTC and XRP, signal the same momentum for ETC? There are signs this may apply to ETC.
In June 2016, ETC was forced to hard fork due to significant amount of ETC stolen because of The DAO project. The fork was not recognized by the community where some said blockchain is irreversible and unchangeable. Eventually, the community split. ETC and ETH went separate ways. Despite no difference technically, ETH has not a cap on supply but ETC, starting from December 12, applied new supply policy setting out the total supply below 23 million. The continuous supply reduction will effectively contain inflation and remain the token’s inherent value.
Like the way BCH came into being, ETC is the result of a split due to different community ideas on future development including hashrate, consensus, supporter and infrastructure. As of this article is to be published, BCH is held at $2,000 while BTC hit approximately $16,000 – an eight-fold gap. However, there are times when the price ratio of the two tokens are 1:2. Looking at ETC and ETH, despite the same code, their prices are different. ETC, now at $32, ETH, around $740, a 20x price gap. In BCH’s case, ETC’s price may hugely increase.
ETC, ETH’s only forked token, is greatly undervalued as BCH demonstrate this the best. Also, a variety of IFOs account for a certain amount of market share, which means, the price of ETC will be several times the current. Moreover, ETC is fueling IoT and exploring market opportunities. ETC, combining with IoT is a broad market which will work miracles.
Technically, ETC is safer and more reliable. ETCDEV, the token’s development team, strives to develop ETC with down-to-earth efforts. Now it is working on making ETC more stable, more flexible and mature. The mature and stable team ensures the safety of the platform and the system, and lay the foundation for price increase. So far, there is no significant safety issues of ETC but ETH occurrences happened due to systematic vulnerabilities.
There are more ETC projects taking place. For example, SputnikVM replacing EVM for acceleration and compatibility with IoT; Emerald Project, providing Dapp developers with a platform; more tools set to integrate external services into ETC. Ahead, ETC will continue to boost IoT and open more apps.
The undervaluation is temporary and a price boom shall defy the former.