Why Only One Major Cryptocurrency Is Surging

Despite a relatively quiet week for major cryptocurrencies, one token’s star is shining brightly.

Last Monday, Ethereum Classic tokens surged in value nearly 14%. While the peak value stopped well below January’s all-time high (59% lower), 9 out of 10 of the largest cryptocurrencies traded lower. The surge moved Ethereum Classic up from 13th to the 12th spot among the world’s largest cryptocurrencies.

The surge could be due to the fact that trading platform Robinhood Crypto has just added support for Ethereum Classic. Robinhood Crypto (the crypto trading arm of Robinhood Markets, an online stockbroker) is young – it’s only been around since February 2018 – but it has since expanded from 5 to 9 US states in half a year. Since Robinhood is already a leading brokerage for traditional investments like stocks and options, market analysts expect the firm to become a leader in cryptocurrency trading as well.

Ethereum Classic is the sixth digital currency to be added to the Robinhood platform. Currently, Robinhood offers real-time market data for 10 additional cryptocurrencies. The firm aims to expand its crypto services to other US states and to expand its trading and data options.

In 2016, 3.6 million Ether tokens were stolen from an Ethereum-based venture capital fund. This forced the Ethereum community and technical staff to find a way to prevent such attacks in the future. Their solution was forking the Ethereum blockchain and creating two separate entities. The new chain includes updated security features. Ethereum Classic remained on the original blockchain, which supporters insisted should be immune to hacks.

And so, Ethereum Classic is still a viable cryptocurrency, although its market cap is just 4.6% the size of Ethereum’s. Now it’s seeing a resurgence since it’s made it to Robinhood – and Coinbase, the leading crypto trading platform, is finalizing its own support for Ethereum Classic.

This means that if you’re an investor, it’s much easier now to get Ethereum Classic.

Comments (No)

Leave a Reply