Ethereum, or ETH, is one of the most successful cryptocurrencies today. The token has not only scaled in value but also has simplified operations for the crypto space.
Thanks to Ethereum Blockchain’s fundamentals, developers can use the token to develop dApps, mint NFTs, and simplify PoS operations via its latest 2.0 upgrade.
But did you know that Ethereum started off as Ethereum Classic? Eventually, the two Blockchains split, creating two unique tokens: Ethereum (ETH) and Ethereum Classic (ECS).
Being an investor, we’re sure you must’ve spent your time figuring out the difference between these very related yet distinctive types of Ethereum. So continue reading as we try to differentiate between the two projects and understand which token is superior.
Ethereum Vs. Ethereum Classic: Understanding The History Of The Blockchains
Initially, the world only knew one Ethereum Blockchain and only one ETH cryptocurrency in 2013. Therefore, the project’s primary purpose was to allow developers to code smart contracts for their dApps.
This allowed other projects to use the Ethereum Blockchain to launch their ICO, making the program a platform of choice for the new ERC-20 tokens. Considering the future of their project, Ethereum Blockchain’s creator Vitalik Buterin introduced a DAO (Decentralized Autonomous Organization).
This idea was a huge success as now small businesses could utilize the technology to create Ethereum price pools and collectively decide what project to invest in. The DAO also raised $150 million worth of ETH after its success. However, a flaw in the Blockhain allowed hackers to withdraw $50 million.
The event divided the community into two. One believed in keeping transparent and permanent ledgers, and the other wanted the Blockchain to be able to revert such attacks and get the funds back. This situation created a possible ruckus and a hard fork in the community, eventually creating a permanent, unaltered Blockchain Ethereum Classic (ECS) and a new, more flexible network called Ethereum (ETH).
So now that we have an idea of ETH and ECS, let’s look at the critical differences between the two projects.
Ethereum Vs. Ethereum Classic: The Key Differences
If you look at it, ETH and ECS are two projects that use the same code, just split into two different paths. Interestingly, even though their differences are a few, they are extreme. So let’s look at the points of differentiation between the two projects:
Concept Behind The Blockchain
Ethereum was created with a vision to create a more flexible, practical Blockchain network that can be altered to revert any hacking attempts. On the contrary, ETC represents the idealists who consider Blockchain an immutable ledger that needs to be permanent.
Adding to it, Ethereum plans to innovate its Blockchain for the future. For instance, the Blockchain recently migrated to a 2.0 update, upgrading from PoW to PoS to be more environmentally friendly with its transactions. Meanwhile, Ethereum Classic intends to continue with the original mining algorithm.
Transaction & Speed
ETH and ETC Blockchains have an average transaction speed of 12-15 tokens at any given time. However, the overall speed and time taken to complete the transaction varies greatly on the total ETH gas fees paid. The speed increases with increasing costs.
Besides, every ERC-20 token developed over the Ethereum Blockchain would require an ETH token to transact. This way, the token stays in demand with no upper supply limit.
Supply & Distribution
Both ETH, and ETC are different in terms of their supply and distribution. While ETC is fixed with a limited supply of 210.7 million, the ETH tokens have no fixed supply. However, ETH has a fixed upper cap of 18 million tokens annually.
This way, since the block rewards for ETC miners are decreased over time, theoretically, ETC becomes a more deflationary token than ETC. Adding to it, there’s a 20% decrease in block rewards for every 5 million ETC blocks mined.
Price Movement Comparison
Thanks to its fundamentals, Ethereum has a wider user base and liquidity than its counterpart. Over the past years, this has resulted in a vast price difference between the two tokens, Ethereum Classic and Ethereum.
However, both the tokens seem to follow a similar market movement in the long run. For instance, both tokens resemble a bullish pattern in 2017, with a drop in 2018 and a price correction in 2021. Talking of 2022, both tokens follow a bearish pattern with minimum price corrections.
But overall, ETH takes the lead with an all-time high of $4,362.25 compared to ETC’s at $176.16.
Here’s a detailed insight into the key differences between the two tokens:
| Ethereum | Ethereum Classic | |
| Market Cap | High: Ethereum is the second-largest token, with a market cap of over $147 billion. | Low: Ethereum Classic stands 23rd on the list of crypto tokens with a market cap of over $2.7 billion. |
| Supply | ETH has no fixed supply but a yearly cap of 18 million tokens. | ETC coins are fixed with a limited supply of 210,700,000 coins. |
| Migration | ETH has successfully migrated to its 2.0 version, switching from a PoW to a PoS module. | No such migration plans are in action. |
| Price Movement | ETH has ranged from $1,040 to $3,700 in 2022. | ETC has ranged from $13 to $51 so far in 2022. |
ETC Vs. ETH: Who Is Superior?
As a digital asset, ETC is backed by a fixed set of ideals by its community and has a speculative value. On the contrary, ETH is more widely used and is often regarded as the industry’s ‘silver,’ primarily for its widespread usage.
In terms of market cap, Ethereum takes the lead with a higher value than its Classic counterpart. To date, over 135+ million ETC are circulating in the market, whereas ETH has a capital of $147 billion with 120 tokens in its ecosystem. Adding to it, ETH is far more liquid, making it a preferred token for trading and investment. Besides, critics estimate Ethereum’s price prediction to touch $10,000 shortly.
Therefore, Ethereum is the clear winner with better liquidity, market capital, and fundamentals than its counterpart Ethereum Classic.
