Interest in the Ethereum network has benefited the Ethereum Classic cryptocurrency. In recent months, social media has allowed Dogecoin to gain notoriety and momentum.
Cryptocurrency prices have gone through a week in red, mainly due to a strong correction of Bitcoin (BTC). Statistics from Live Coin Watch indicate that the price of almost 100% of the altcoins has plummeted.
However, some cryptocurrencies have maintained positive balances in the last month. The top leaders in the market are Ethereum Classic (ETC), Dogecoin (DOGE), Cardano (ADA), and Waves (WAVES).
The price of the main cryptocurrency on the market recorded a much stronger fall than on May 12th. In the early hours of May 19th, Bitcoin reached less than USD 40,000 and continued falling to hit a bottom of USD 30,000. In other words, it depreciated by around 29.7% in the last seven days.
The measures that the government of China announced seem to have caused Bitcoin’s price to fall. They decided to prohibit institutions and means of payment from conducting transactions with cryptocurrencies.
On May 21st, Chinese Vice Premier Liu He and the Chinese State Council issued another statement. They said that they needed strong measures to protect the financial system against cryptocurrency trading.
Additionally, Tesla’s billionaire founder Elon Musk made unfavorable comments and informed that he would stop accepting payments with the pioneering cryptocurrency. He alleged that Bitcoin mining was harming the environment.
Ethereum Classic Consolidates as Cheaper Alternative to Ether
Ethereum Classic, a cryptocurrency that emerged from a fork of Ether in 2016, has shown a major rally since early May. So far this month, it has exceeded its all-time high above USD 39, which it had reached in 2018.
So far in 2021, the growth of Ethereum’s cryptocurrency has been 367%, while that of ETC has been around 1,464%. Some retail investors view Ethereum Classic as a faster way to make money, which may have contributed to its high advance.
The cryptocurrency seems to attract the attention of members of the ecosystem as it is an alternative to the high transaction costs on Ethereum.
Just like Ethereum, Ethereum Classic is designed to run smart contracts. However, it had to face security problems in 2020, after suffering three 51% attacks. They claim to have overcome this problem with a new security protocol.
Elon Musk’s Interest Helps Dogecoin Gain Momentum
Dogecoin is among the few cryptocurrencies that have seen monthly growth amid the general market crash. In this period, Elon Musk has insistently driven the price of the meme cryptocurrency higher.
The billionaire entrepreneur has been collaborating with its developers since 2019. In addition to giving them advice and a “vast” list of contacts, Musk offered to fund the development of Dogecoin. However, the team behind the cryptocurrency rejected the offer, according to developer Ross Nicoll.
The price of the cryptocurrency has advanced steadily since the beginning of May, peaking at USD 0.737 on May 8th. Afterward, its value has declined due to negative tweets from Musk, but it remains in the top 10 by market capitalization.
By Alexander Salazar
