Ethereum Classic Performed Four Times Better Than Ethereum YTD

Ethereum Classic (ETC), a fork of Ethereum (ETH), has outperformed Ethereum in 2021. According to the Ethereum Classic official Twitter page, the Ethereum fork has gained 1,464% since the beginning of 2021 while Ethereum itself has only gained 367% during the same period.

This means that ETC has performed 4 times better already this year. This performance is in spite of the several 51% attacks on Ethereum Classic this year which would have discouraged its use.

Some new investors saw Ethereum Classic as a cheaper alternative to Ethereum, this also influenced the ETC price.

ETC taking ETH popularity

Ethereum is the second largest cryptocurrency by market capitalization. Naturally, it is one of the most popular ones as well. This is especially so because of the nature of the Ethereum blockchain. It is a hub for smart contract and dApp developers. It also recently became a bigger network with the advent of DeFi which is primarily based on the Ethereum blockchain.

The network however doesn’t seem to be scalable enough to accommodate the unprecedented growth, so transaction fees have become an issue. This has made users seek similar networks that have lower fees and higher speed.

While Binance Smart Chain and Tron serve as alternative destinations for DeFi, Ethereum Classic supports smart contracts and dApps just like Ethereum, and true fans of Ethereum could be moving to it as an alternative.

This could be one of the reasons why ETC has grown so fast this year as more users are interacting with Ethereum Classic dApps and smart contracts using ETC.

Ethereum remains ahead

Ethereum Classic has outperformed Ethereum on the market this year and Binance Smart Chain now has more active daily active users. Despite the issues with scalability, Ethereum still holds its place as the biggest network for dApps, smart contracts and DeFi. The network is also working to increase its scalability and cut transaction fees.

Earlier this year, it announced the integration of Polygon (MATIC) to help with this. If it succeeds in the coming months, it may get more unlikely for ETC to stay ahead of it on the market and for BSC to surpass its daily active users.