The second largest cryptocurrency by market capitalization, Ethereum, recently had a split creating a new currency known as Ethereum Classic. This new runoff currency has the potential to reach high prices given the recent price action. The currency known as Ethereum Classic currently has a market capitalization of $1.7 billion, which makes it the 15th largest currency by market capitalization.
The currency recently hit an extremely high trading volume amount of $1 billion in only a 24-hour period. This number meant that the volume surpassed that of its older brother. That makes Ethereum Classic one of the top five most traded cryptocurrencies as of recent. The coin is up almost 1000% over last year, and only looks like it is continuing to rise.
The coin, abbreviated as ETC, was made out of a fork from a hacking of the organization known as the Decentralized Autonomous Organization. Vulnerabilities allowed around $50 million in currency to be drained from the DAO back in June of 2016, leading to the offshoot currency mentioned previously. Since the hacking of the DAO, the U.S.
Securities and Exchange Commission stated that any future DAO-like enterprises will be considered securities, and therefore, “U.S. securities laws may apply to offers, sales, and trading of interests in virtual organizations.” At a conference held recently, it was realized across the board that a large amount of work is occurring in the industry to help proliferate Ethereum Classic throughout the market.
Another takeaway from the conference is that investors and developers are beginning to work together to create a new market for the space. As the number of transactions increase exponentially, it is only a matter of time before offshoot currencies like Ethereum Classic begin to transform the market on cryptocurrency.