The Ethereum Classic bearish on-chain signals are showing that the asset is strongly underperforming the rest of the market including Bitcoin. The popular altcoin dropped in the past 24 hours with a loss of 2%. This means that the asset is underperforming BTC by 5% so let’s find out more in the Ethereum classic crypto news.
Ethereum classic bearish on-chain signals are showing that the asset is preparing to go lower. This comes after the network was hit with 51% attacks that made most traders question the value of the coin. ETC trades at around $7 of this article’s writing making it one of the top 30-assets in circulation. ETC is printing bearish on-chain signals despite the current BTC price breakout. The analytics startup IntoTheBlock shows the same data.
Given the recent network attacks on Ethereum Classic, we have increased the confirmation time for ETC sent to Coinbase & Coinbase Pro to ~2 weeks. We are actively monitoring the situation and will provide updates as they become available.
— Coinbase Support (@CoinbaseSupport) August 8, 2020
According to the company, ETC is “mostly bearish” with three out of five company’s core indicators are printing bearish signals and they are “Net Network Growth” the number of the addresses with ETC balances and other indicators of the momentum of the profitability of investors and the large transaction number. The slowdown in the network’s activity could pertain to the news about the Coinbase listing of the asset.
Due to the recent issues with the blockchain, the company will require two weeks to confirm the transactions in order for the deposited coins to show up in the user accounts. This makes it quite impossible for one to deposit their coins on the exchange, decreasing the transaction demand:
“Given the recent network attacks on Ethereum Classic, we have increased the confirmation time for ETC sent to Coinbase & Coinbase Pro to ~2 weeks. We are actively monitoring the situation and will provide updates as they become available.”
It’s still unclear to what extent the ETC market value will correlate with the on-chain trends of ETC. Although the coin is still worth $800 million, some started to question if the network has a value at all. Ethereum Classic saw two 51% attacks in just a week, ending up in reorganizing the chain and pulling off other tricks. The most common threat of the attack is double-spending the coins by allowing one’s balance to be used more than once on the service providers. Analysts say that if Ethereum Classic cannot secure value due to these attacks, it is practically worth nothing as Dan Tapiero said:
Why isn't #ethereumclassic worth zero? It has a $800mm mkt cap.
Why own something that can be easily attacked and stolen when there are so many alternatives (even within alts space).
Digital currency is supposed to be secure.
What am I missing here?https://t.co/k78W8m6kL0
— Dan Tapiero (@DTAPCAP) August 6, 2020
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