While Bitcoin’s price stabilizes, Ethereum Classic continues to climb. On a weekly basis, the Ethereum offshoot increases by over 65 percent – a planned upgrade could be responsible for this.
The course of Ethereum Classic only knows one direction at the moment, namely up. In the last 24 hours alone, the Ethereum offshoot rose by a proud 21.27 percent. At the time of writing, the exchange rate is hovering around $ 60; yesterday, June 29, it was still hovering around the $ 40 mark.
ETC has been taken over by hackers several times in the past. At that time, a so-called 51 percent attack ensured that malicious actors rewrote the Ethereum Classic Blockchain in order to enrich themselves. Some investors had already written off Ethereum Classic at that time and should now be surprised at the recent price increase of ETC.
Developers are planning a major upgrade
An important factor that is currently causing euphoria in the ETC community is that announcement a hard fork. This has been up for debate in the Ethereum Classic Community for some time and is based on the villain from the X-Men-Universe known as “Magneto”.
You can read about how exactly forks work and what advantages and disadvantages they have in our Academy article.
The aim of the “Magneto Upgrade” is to improve the security of the Ethereum Classic Blockchain and at the same time to lower the costs for the respective transactions. This ambitious plan is set to become a reality by aggregating information about transactions to make transactions more effective.
The beta tests for “Magneto” have been in full swing since June 2nd. As soon as they are complete, the upgrade should officially go live.
What do miners and users of ETC have to do?
In order for “Magneto” to start successfully, ETC miners have to upgrade their node software to a update new version. Traders and users, on the other hand, only have to check whether the respective exchanges on which they trade support the hard fork.
Ethereum 2.0 responsible for ETC’s price rise?
Another factor that could give Ethereum Classic a tailwind is the fact that its big brother, Ethereum, will switch to proof-of-stake. It is conceivable that some investors want to protect themselves against problems with this project and therefore continue to buy the Ethereum Classic, which is based on proof-of-work. For this reason, ETC’s recent price surge could also be a side effect of Ethereum’s consensus change. Especially since the upcoming Ethereum Classic Hard Fork “Magneto” will continue to rely on the proof-of-work procedure.