ETH Or ETC? Battle To Dominate Asia Is On
The struggle underlying the division between the Ethereum and the Ethereum Classic networks seems to have shifted to the Asian market. After Bitcoin and Litecoin, a traditional China-linked cryptocurrency, Ether (ETH) and ETC are currently the two most recognised altcoins in parts of Asia, especially China, where they seek to capture more share of the market. However, going by recent trends, it is unclear which among both of them will gain a upper hand in the long term.
As at April 30, the price of Ethereum Classic on South Korea’s biggest exchange Coin One showed it has increased with trade volume soaring to as high as 1.5 million – a 10x increase resulting in the rise of its price to slightly over $6 – giving its proponents a reason to think ETC is a better choice than Ethereum at the point.
Though these are based on some of the recent moves that have worked out well for ETC, ETH has risen on the other hand too in terms of price – over $80 – even as activities related to the second most biggest cryptocurrency by capitalization seems to be increasing in China.
The first-ever private fund that invests in Ethereum Classic with $10 million in seed capital was launched by the U.S. investment management company, Grayscale Investments LLC and ETC also recently capped its supply at 210 million units which makes it infinite and easier to value as the market evolves further.
At a market capitalization currently standing at around $600 million making it the sixth largest digital currency in the market according to CoinMarketCap and a five ETC per block and a 20% decrease (The Tithing) in block reward at every 5 million blocks until the cap is reached, it didn’t come as a surprise that interest in ETC grew at the news of the launch of Grayscale’s fund.
Also looking at it from a general perspective of those who trade in digital currencies, the belief that Bitcoin will always grow with time but altcoins will always grow faster in percentage applies to an extent. At a meagre $6, ETC has room for growth which is considered higher at the time going by the buzz around.
Though some in the industry still think ETC needs to find a legit use case or a value proposition other than the professed immutability to sustain its growth, Grayscale in its introductory paper describes Ethereum Classic as a “next generation blockchain platform for a new internet infrastructure – one that can dramatically enhance the ways that information and value are shared in the digital economy, unlocking trillions of dollars in untapped economic surplus in the process.” If this turns out good, it would mean that others who view ETC as an undervalued coin with strong fundamentals that is just starting to find its true value would take the day.
ETC has since risen to be the third most traded cryptocurrency just behind Ethereum and Bitcoin. However, it is still behind ETH on the market stand. Ethereum has been working its way inside out of Asia’s largest market, China, to other countries like Taiwan and India which is organizing its first ever international blockchain hackathon later this month in collaboration with the Ethereum Foundation.
Following an increased interest in the Enterprise Ethereum Alliance, some Chinese cryptocurrency exchanges including OKCoin have expressed the plan to integrate support for ETH trading on their platforms. If and when that happens, there is likely to be a competition over Ethereum in both the Chinese and South Korean markets which could spark a boom for ETH price.
Some meetups have also been held in parts of China in April where relevant discussions about Ethereum and its EEA were tabled. Put together with China’s interest in blockchain and the plethora of big corporations that are already looking into the technology in the country, the Ethereum platform could seize the opportunity to spread through the Asia region as a perfect growing ground.
While Ethereum’s Vitalik Buterin speaks Mandarin which could appeal to a wide audience, Ethereum Classic has major Chinese investors such as Chandler Guo behind it.