The 51% attack on Ethereum Classic (ETC) led to the loss of more than $1 million. While this is catastrophic, since it has broken the immutability of ETC, this crypto’s price action paints a totally different picture. The price of Ethereum Classic (ETC) has been largely stable all through this catastrophe. It is only today’s market wide drop that has caused its price a major dent. But even then, Ethereum Classic (ETC) isn’t anywhere close to the biggest losers in the day. This can only be the result of three of the following possible scenarios.
In a normal market, an attack like what happened to Ethereum Classic (ETC) would have led to a massive dip in price. That’s because of short sellers taking advantage, and investors dumping to protect their capital. At this point, Ethereum Classic (ETC) would be the biggest losers, especially after today’s market wide dump. The fact that this is not happening could mean that its price is artificially held, to create a semblance of stability. Crypto is not regulated, and everything goes. It is the Wild West, which makes such a possibility quite plausible.
Ethereum Classic (ETC) is a fundamentally strong coin
The other possibility would be that Ethereum Classic (ETC) is a fundamentally strong coin, which gives it the shock absorbers to take in such calamities and still survive. This possibility is strengthened by the fact that, crypto heavyweights like the IOHK have an interest in it. Besides, with Dapps in the ETC ecosystem on a growth path, investors could still have faith that it will recover, and as such are hanging in there for the long-haul. If the majority of people invested in it are HODLERs, then this may explain the lack of any major dump after the exit of the ETCDEV and now the 51% attack.
Crypto space is getting mature
The lack of any major dump on ETC could also signal to the fact that, crypto space is getting mature. In 2018, any hint of bad news coming up were wrecking the market. For instance, when Verge (XVG) was attacked, it was followed by an epic dump, one that it has never really recovered from. Even unsubstantiated rumors have led to massive dumps in the past. The Ethereum Classic (ETC) price stability could be an indicator that after a year-long bear market, investors are developing thick skin. People could be taking a more long-term view of the market, and getting over the hangover of the 2017 Bull Run. If that’s the case, then it would be a reason to be long-term bullish not just on ETC, but crypto in general. That’s because, it would lead to more stability, and a more sustainable value growth in the future.
Whatever it is that is holding up Ethereum Classic (ETC), one fact remains, it’s an interesting crypto to keep an eye on this quarter, both for those looking to short it, and for long-term believers who think it can retest its all-time highs again.