Understand the bases of Ethereum Classic (etc.) and fundamental analysis techniques
Ethereum Classic, also known as etc, is a network of decentralized and open source blockchain which was created by Vitalik Buterin in 2016. It is based on Ethereum protocol but has significant differences in its technology and architecture under -Jacentes. In this article, we will immerse ourselves in the techniques of fundamental analysis for etc, by exploring its advantages, its risks and its potential strategies for investors.
Why invest in etc.
Etc presents several advantages which make it an attractive investment opportunity:
- Long-term growth : Ethereum Classic is a decentralized platform with a strong emphasis on the scalability, security and community engagement of developers. Its long -term growth potential is high due to its growing user base, the increase in transactions and continuous development volumes.
- Diversified ecosystem : Blockchain technology from etc allows the creation of various applications, such as decentralized finance (DEFI), non -fascinated tokens (NFT) and play platforms. This diversified ecosystem offers opportunities For several sources of income and diversification of assets.
- BASTE competition : compared to other major projects based on Ethereum, such as Ethereum and Cardano, etc. At a relatively low level of competition, which can lead to increased adoption and a market share.
Fundamental analysis techniques for etc
Investors must carry out an in -depth fundamental analysis to assess the potential performance of etc. before making an investment decision. Here are some key techniques to consider:
- Capitalization Market : The market capitalization of etc is relatively low compared to other major projects based on Ethereum, but it has regularly increased over time. A higher market capitalization may indicate increased confidence and adoption of investors.
- Transaction volume : The volume of etc. transactions increased rapidly, with an increase of 100 million units per day in 2020 to more than 500 million units per day in 2021. This growth is probably due to the growing demand for decentralized applications (DAPPS) on the Ethereum network.
- Developer activity
: The number of developers contributing to ETC has increased regularly, with a significant increase of 15,000 contributors in 2019 to more than 50,000 contributors in 2021..
- USE EVM : The use of the Ethereum virtual machine (EVM) on the ETC network increased rapidly, with a 10% increase in total transactions in 2019 to more than 30% in 2022. This increased use EVM may indicate improvement of performance and scalability for etc.
- Supply in tokens : The offer of etc is relatively low compared to other major projects based on Ethereum, but it has increased regularly. A higher token offer can lead to increased adoption and a market share.
Risks and challenges
While etc has several attractive characteristics, there are also significant risks and challenges:
- Competition of rival projects : rival projects, such as Ethereum (ETH) and Cardano (ADA), can constitute a threat for the market share and the value of the etc.
- Regulatory uncertainty : Regulatory environments in different countries and jurisdictions can be unpredictable, which can lead to increased adoption risks for etc.
- Limitations of scalability : The scalability of the network etc has been a concern, some users reporting treatment times for slow transactions and high costs.
Conclusion
Ethereum Classic is an attractive investment opportunity due to its long -term growth potential, its diversified ecosystem and relatively low competition. However, investors should carry out an in -depth fundamental analysis before making an investment decision.
