The ETC/ETH ratio has collapsed more than 95% from its 2017 peak, placing Ethereum Classic (ETC) at historically depressed valuation relative to Ethereum. Markets rarely trend in a straight line forever; extreme ratio lows often precede outsized reversals.
1) Extreme Mean-Reversion Setup
At current levels around ~0.004 ETC per ETH, the ratio trades near historical all-time lows. Extended downtrends eventually exhaust sellers, and even small new inflows can drive disproportionately large upside.
2) Scarcity of Programmable Proof-of-Work (PoW) Networks
After Ethereum transitioned to Proof-of-Stake, ETC became the primary large-cap programmable PoW chain. If regulatory or ideological preference shifts toward PoW security—especially among institutional allocators who value proven energy-based consensus—ETC could capture renewed attention as the only meaningful “PoW smart-contract” alternative. BTC cannot natively run smart contracts; ETC can.
3) Residual Mining Backing & Accumulation
ETC inherited Ethereum’s mining ecosystem. While profitability is low, the mining infrastructure base still exists and some miners accumulate tokens over time. This creates structural bid support. Should crypto volatility or energy-market dynamics favor PoW again, ETC could experience renewed mining flows, supporting price appreciation relative to ETH.
4) Narrative-Driven Rotational Beta
Crypto bull markets exhibit predictable rotation: BTC → ETH → large caps → laggards → speculation.
1) Extreme Mean-Reversion Setup
At current levels around ~0.004 ETC per ETH, the ratio trades near historical all-time lows. Extended downtrends eventually exhaust sellers, and even small new inflows can drive disproportionately large upside.
2) Scarcity of Programmable Proof-of-Work (PoW) Networks
After Ethereum transitioned to Proof-of-Stake, ETC became the primary large-cap programmable PoW chain. If regulatory or ideological preference shifts toward PoW security—especially among institutional allocators who value proven energy-based consensus—ETC could capture renewed attention as the only meaningful “PoW smart-contract” alternative. BTC cannot natively run smart contracts; ETC can.
3) Residual Mining Backing & Accumulation
ETC inherited Ethereum’s mining ecosystem. While profitability is low, the mining infrastructure base still exists and some miners accumulate tokens over time. This creates structural bid support. Should crypto volatility or energy-market dynamics favor PoW again, ETC could experience renewed mining flows, supporting price appreciation relative to ETH.
4) Narrative-Driven Rotational Beta
Crypto bull markets exhibit predictable rotation: BTC → ETH → large caps → laggards → speculation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.