The price of ethereum classic (ETC), the cryptocurrency that forked away from the ethereum blockchain in 2016, has depreciated more than 30 percent against the US dollar since its listing on Coinbase.
Prior to the August 7th listing date, ETC’s price surged on two occasions, the first of which began on June 11th when Coinbase announced their intention to add Ethereum Classic to their platform. ETC’s price went from $12.19 to $16.40 over the next 48 hours, printing a 34 percent gain.
The next and most dramatic boost began on August 3rd, following another announcement from Coinbase which stated that ETC trading would finally go live on August 7th.
From August 3rd to the 7th, the price rose more than 50 percent in US dollar terms, hitting a peak of $21.25, according to data from Bitfinex.
It’s not exactly a surprise when prices rise significantly after news of this nature is released, as investors would regard an asset as undervalued when taking into account the potential for a large cash flow increase that may accompany an exchange listing.
That said, this period of volatility often causes prices to rise to an amount where the asset is no longer considered undervalued, setting the stage for a market sell-off.
Ethereum classic was no exception to this reality. After the recent price high of $21.25, the price has fallen more than 30 percent versus the US dollar and is currently trading at $15.
That said, it’s worth noting that the entire cryptocurrency market has been in a major slump as of late, shedding billions of dollars worth of market capitalization value during Wednesday’s trading session.
Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.
Image via Shutterstock
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
Join 10,000+ traders who come to us to be their eyes on the charts, providing all that’s hot and not in the crypto markets.