Understanding the basics of Ethereum Classic (ETC) and basic analysis techniques
Ethereum Classic, also known as ETC, is a decentralized and open source blockchain network that was created by Vitalik Buterin in 2016. It is based on the Ethereum protocol, but has some significant differences in its underlying technology and architecture. In this article we will deal with the basic analysis techniques for etc. and examine your potential advantages, risks and strategies for investors.
Why invest in etc.?
Etc. has several advantages that make it an attractive investment option:
- Long -term growth
: Ethereum Classic is a decentralized platform with a strong focus on scalability, security and commitment of the developer community. The long -term growth potential is high due to the growing user base, the increasing transaction volumes and continued development.
- Diversified ecosystem : The blockchain technology of etc. enables the creation of various applications, such as: B. decentralized financing (defi), non-fungal tokens (NFTS) and gaming platforms. This diversified ecosystem offers options for several sources of income and diversification of assets.
- Low competition : Compared to other important projects based in Ethereum, such as Ethereum and Cardano etc., has a relatively low level of competitive level, which can lead to increased acceptance and a market share.
Basic analysis techniques for etc
Investors should carry out a thorough basic analysis in order to evaluate the potential performance of etc. before an investment decision is made. Some key techniques must be taken into account here:
- Market capitalization : The market capitalization of etc. is relatively low compared to other important projects based in Ethereum, but has increased steadily over time. A higher market capitalization can point out that the trust and acceptance of the investor have an increased trust and acceptance of investors.
- Transaction volume : The transaction volume of ETC is increased rapidly, whereby an increase of 100 million units per day is over 500 million units per day in 2021. This growth is probably due to the increasing demand for decentralized applications (DAPPS) in the Ethereum network.
- Developer activity : The number of developers who contribute to ET has increased steadily, with a remarkable increase in 15,000 contributors in 2019 increasing to over 50,000 participants in 2021. This indicates that a strong and active developer community is behind it, etc.
- EVM use : The use of the Virtual Machine (EVM) in Ethereum’s Ethereum Etherum has increased rapidly, whereby an increase of 10% of the total transactions in 2019 increased to over 30% in 2022 over 30%. This increased use of EVM can indicate improved performance and scalability for etc.
- token supply : The token supply from etc. is relatively low compared to other important projects on Ethereum-based projects, but has increased steadily. A higher token offer can lead to increased acceptance and a market share.
Risks and challenges
While etc. represents several attractive features, there are also some considerable risks and challenges:
- Competition through competing projects : Competitive projects such as Ethereum (ETH) and Cardano (ADA) can be a threat to the market share and the value of ETC.
- Regulatory uncertainty
: Regulatory environments in different countries and jurisdiction can be unpredictable, which can lead to increased incisions for etc.
- Scalability restrictions : The scalability of the ETC network was a problem, with some users reporting slow transaction processing times and high fees.
Diploma
Ethereum Classic is an attractive investment option due to its long -term growth potential, the diversified ecosystem and the relatively low competition. However, investors should carry out a thorough basic analysis before making an investment decision.