The long-awaited arrival of a bitcoin spot ETF in the US has sparked a surge in cryptocurrency prices, with ethereum Classic leading the charge among altcoins.
After languishing around $20 for months, ethereum Classic (ETC) has shot up more than 50% In the last seven days, it is currently hovering around $29.45 and is just a breath away from reclaiming the $30 mark.
This impressive rally comes amid a broader market rally sparked by the landmark decision by the Securities and Exchange Commission (SEC). technology/spot-bitcoin-etfs-start-trading-big-boost-crypto-industry-2024-01-11/” target=”_blank” rel=”nofollow”>bitcoin Trust ETF approval on January 10, 2024.
ETC price action in the last week. Source:ethereum-classic" target="_blank" rel="nofollow"> Coingecko
ethereum Classic Surge: A Combination of Factors
ETF-driven optimism: The approval of the bitcoin spot ETF signifies increased institutional interest in the cryptocurrency market, a development that traditionally benefits the entire ecosystem, including altcoins like ETC. This optimism is reflected in the strong performance of other major cryptocurrencies, with ethereum witnessing a 10% rise and briefly hitting a 20-month high above $2,600.
The unique appeal of ethereum Classic: Compared to its ethereum counterpart, ethereum Classic boasts a smaller market capitalization and lower transaction fees, potentially making it a more attractive option for traders looking for higher returns and cheaper on-chain activity. Recent upgrades to its network have also reinforced confidence in its technological capabilities.
Overflow effect and community exaggeration: Without a doubt, the approval of the bitcoin ETF has fueled a general sense of optimism across the crypto landscape, influencing investor sentiment towards altcoins with perceived potential. Additionally, strong community support and active development around ethereum Classic further contribute to its upward momentum.
ETC market cap currently at $4.248 billion. Chart: TradingView.com
ETC Trading Volume Soars
The increase is not limited only to the price. ethereum Classic trading volume has also skyrocketed by a staggering 276% in the last 24 hours, reaching a volume of $1.8 billion.
This increase in trading activity further validates the market interest in ethereum Classic and potentially indicates continued bullish pressure on its price.
However, it is essential to remember that the cryptocurrency market remains very volatile. While the approval of the bitcoin Spot ETF and the recent performance of ethereum Classic are positive indicators, investors should conduct extensive research and consider both the potential benefits and risks before making any investment decisions.
With its strong community, technological advancements, and now tailwinds from the approval of the bitcoin ETF, ethereum Classic has positioned itself as a leader in the current altcoin rally.
It remains to be seen if it can maintain its momentum and break the $30 barrier, but its recent performance indicates a renewed level of enthusiasm for this resilient blockchain project.
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