Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
The performance of Ethereum Classic [ETC] has not been any different from other cryptocurrencies this week. Its price fell more than 10% over the last three days.
Previously, ETC’s price rose 10% a day after Ripple [XRP] secured a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on 13 July. However, its price went down soon after.
ETC’s price action in the first quarter of this year was praiseworthy, but the subsequent two quarters show a shoddy performance.
Let’s see if it can still attract investor attention. However, the network has been losing popularity from a long-term perspective. Speaking of popularity, AI has really taken off this year, with ChatGPT leading this charge.
Assessing fundamental data using ChatGPT
Perhaps we can leverage the power of AI to find out what the future has planned for ETC. I asked ChatGPT about Ethereum Classic and the interaction was rather interesting. The initial plan was to establish the depth of the AI before going deeper into the type of information that I wanted to pursue.
The first question requested ChatGPT to provide a detailed and concise explanation of Ethereum Classic and its fundamentals. Here’s the response –
Below is the response after I requested a shorter version.
The AI bot seems to have a good handle on things based on the information it provides. However, there have been incidents where inaccurate information has been generated, hence the need to verify information arises. Now that we have a good base, it’s time to up the ante a bit.
But first, those keeping a close eye on ETC may have noticed that its community has not been very active. Its development has also lagged behind that of Ethereum and other networks.
Our next query focuses on establishing why the Ethereum Classic network is less popular than Ethereum. It gave the following reasons:
- Community Support: After the 2016 DAO hack, the Ethereum community decided to implement a hard fork that created a new blockchain network known as Ethereum, which received support from the majority of the Ethereum community. Ethereum Classic, which remained on the original blockchain, has a smaller community and fewer developers.
- Lack of Updates: Ethereum Classic has not received as many updates and improvements as Ethereum. This has resulted in slower transaction times and less advanced smart contract capabilities.
- Perception of Immutability: Ethereum Classic’s commitment to immutability is a key feature for some users. It can also be seen as a liability by others who prefer the flexibility of a blockchain that can be updated if necessary.
- Limited Use Cases: Ethereum has a wider range of use cases and is more widely adopted by businesses and developers. Ethereum Classic has a smaller ecosystem of decentralized applications and is less widely used in commercial applications.
AI-generated all the above points but they are difficult to argue against. In other words, ChatGPT’s answers were spot on.
Ethereum Classic still has some edge over the competition
I was curious to find out what the AI had to say about Ethereum Classic’s advantages over its more popular counterpart. It responded with the following points:
- Immutability: Ethereum Classic has a strong commitment to immutability. Transactions cannot be altered or deleted once recorded on the blockchain. This makes ETC a reliable and secure platform for storing and transferring digital assets and may be particularly appealing to users who prioritize security and decentralization over flexibility and upgradability.
- Proven Technology: Ethereum Classic is based on the original Ethereum blockchain, which has been operating since 2015. This gives it a longer track record than many other blockchain platforms, and may appeal to users who value stability and reliability.
- No Hard Forks: Since the split from Ethereum in 2016, Ethereum Classic has not undergone any hard forks or major upgrades that could potentially cause network disruptions or create competing blockchain networks. This could make it a more stable and predictable platform for developers and users.
So far so good, but the above answers got me thinking about the kind of scenario where Ethereum Classic would achieve mass adoption. These were the brief points that ChatGPT shared –
The aforementioned points highlighted some key advantages of sticking to a proof-of-work system with a heavy focus on decentralization. These characteristics would make the network and its native coin more preferable, especially in case of a harsh regulatory crackdown. Regulators, especially in the United States, have adopted an aggressive position against cryptocurrencies, but not to the extreme, yet.
Asking ChatGPT to predict ETC’s price action
While still thinking about Ethereum Classic’s prospects, I decided to explore whether the AI can have insightful predictions regarding ETC’s prospects. Specifically, I wanted to know how soon ETC can reach ETH’s $1,900 press time price. Unfortunately, the language-based AI algorithm could only do so much and predictions were the limit. Here is how it responded –
That would have been the end of that attempt, but I recently found out about the DAN (do anything now) jailbreak prompt, which unlocks some limitations. Moreover, ChatGPT’s algorithm learns, and it can also organize raw data into a more useful format. Thus, an idea was born.
What if we could somehow get ChatGPT to understand the history of ETC’s price action, including previous price patterns? We could potentially get it to give a more concrete answer regarding price predictions.
I asked ChatGPT when ETC can hit $50. Though the AI bot said it would hit the target sooner than expected but didn’t give a deadline.
Analyzing Ethereum Classic’s daily price charts
After having a “fine, I will do it myself” moment, I embarked on assessing ETC’s latest price action.
On 13 April, the price of ETC increased as the cryptocurrency’s recent uptrend gathered momentum. The price of the coin increased to a high of $22.47, which is the highest point since March 18 of this year.
Bitcoin’s [BTC] value increased by over 80% this year, outperforming Tesla, equities, and gold. Bitcoin and other cryptocurrencies, like Ethereum Classic, are closely related.
Ethereum Classic also reacted positively to the Shapella Upgrade that took place in April. The upgrade allowed Ethereum Stackers to withdraw their tokens. The amount of Ethereum staked, according to data from Staking Rewards, is over $39.7 billion.
Let us now look at Ethereum Classic’s on-chart indicators.
ETC was trading at $15.57 at press time. Both ETC’s Relative Strength Index (RSI) and Money Flow Index (MFI) rested above the neutral 50-mark. But its On Balance Volume (OBV) registered a decline.
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Though ChatGPT is hopeful of the future performance of Ethereum Classic, its on-chart metrics don’t give us hope due to the current market sentiment.
In conclusion, ETC’s long-term prospects don’t look very bright, given the minimal amount of activity on the network.