Ethereum Classic Should See Big Gains From the Magneto Upgrade
Ethereum Classic (CCC:ETC-USD), also known as the “original Ethereum”, has had a topsy-turvy run at the market of late.
The crypto market, in general, has been incredibly volatile in the past few months; ETC is no different. The crypto has shed roughly 20% of its value so far in July. However, this is a massive month for ETC, as its developers roll out the Magneto upgrade.
The upgrade has the potential to turn things around for Ethereum Classic and solidify its position along with its better-known counterpart.
ETC had been on a roll in 2020 and at the beginning of this year. Year-to-date gains are at a stellar 650% despite the weakness in the second half of the year. ETC was trading as high as $133.80, a premium of 65.5% on its current price.
The Magneto upgrade could give the crypto the much-needed lift it needs to get back to the highs it achieved in early May. Moreover, with its sibling trading at more than 43x its price, ETC may be a better alternative to invest in the Ethereum (CCC:ETH-USD) blockchain.
The Magneto Upgrade
The Magneto update includes several key upgrade proposals, which were first announced in an Ethereum upgrade in Berlin this year. The project aims to increase network security, reduce energy costs and store critical information in one place for user access. ETC’s developers have been testing its beta version for a while now on the Morder and Kotti testnets. The update is set to be rolled out later in July.
Ethereum and Bitcoin (CCC:BTC-USD) have been criticized for their energy consumption and the deficiencies in their platforms from a security standpoint. Hence, investors may rank Ethereum Classic among the more sustainable cryptos in the market. Green coins are becoming more sought after every passing day; ETC can be a significant player in that realm.
Stevan Lohja, a vital member of the ETC community, wants users to upgrade to Magneto compatible software to avoid hiccups in the software transition. He states that:
To ensure a successful fork, we ask ETC consumers to upgrade their node software to a Magneto compatible version if they have not done so already. If you’re not operating nodes or services, but use ETC through other services, then check with that service to ensure they’re supporting the Magneto hard fork.
Price Prediction For Ethereum Classic
With the Magento update looming, it is interesting to see how the analysts’ predictions for ETC have changed for the year and beyond. Most analysts remain on ETC’s long-term prospects and believe that the upgrade will prove fruitful.
TradingBeasts predicts that Ethereum Classic will close out the year valued at $53.70 and reach $101.30 by the conclusion of 2024. LongForecast is more bullish on its prospects this year, as it feels that it could end the year valued at $112.10. However, it feels that its price may plunge to $50.20 by the end of 2024.
Moreover, DigitalCoinPrice, feels that the Ethereum classic could trade at $90.40 by the end of this year and be valued at $175.80 by the end of 2025. Additionally, WalletInvestor has ETC’s one-year forecast at $80.50 and feels it could eclipse the $200 mark in the next five years.
The Bottom Line
Ethereum Classic has struggled to gain momentum along with the rest of the crypto industry. However, its Magento update could potentially be its ace in the hole. The update will make ETC’s network more robust and energy-efficient, which are things that have eluded other cryptocurrencies.
Analysts are bullish on its future performance and feel that the crypto has an impressive growth runway ahead. Ethereum Classic is a buy ahead of its Magneto update.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.