The ethereum classic price experienced a sudden surge on Friday, rocketing more than 23% to cross the $20 threshold for the first time since July.
When the cryptocurrency markets soared in May and June, ethereum classic was one of the greatest beneficiaries. Between April and June, the ethereum classic price rose 800%, peaking at $24 on June 18. However, the markets took a turn for the worse, and the ethereum classic price began a prolonged decline that reduced it to $14 by the beginning of last month. August brought a market resurgence, but this rising tide did not lift ethereum classic, whose price continued to languish between $14 and $15. As a result, ETC slid down the market cap rankings, eventually dropping out of the top 10.
However, that changed on September 1, as ethereum classic put its August woes in the rear-mirror and began to rally. The first signs of the rally actually appeared the night before, when both ETC's trading volume and price began to tick upward. By 1:00 UTC, 24-hour volume had increased to $100 million and ethereum classic was trading close to $17. Ethereum classic continued to pick up steam, and at 11:00 UTC, ETC began to soar. Within an hour, the ethereum classic price was just pennies away from $20 and daily volume had increased to $300 million. After a brief dip, the ethereum classic price climbed over the $20 mark at about 14:00 UTC. At present, ethereum classic is trading at a global average of $20.03, representing a daily increase of 23%. This advance increased ethereum classic's market cap to $1.9 billion, helping it reclaim the 10th-place ranking from NEO.
It is not immediately clear what is fueling this ETC price climb. Barry Silbert--whose Ethereum Classic Trust reportedly holds 3.6% of the circulating ETC supply--stated on Twitter that he believes the cryptocurrency serves as a solid store of value, even if it never becomes a central hub for decentralized applications (Dapps) like Ethereum hopes to be.
In any case, ethereum classic has seen a tremendous increase in trading volume. In the past 24 hours, more than $500 million worth of ETC has changed hands on the exchanges tracked by CoinMarketCap.
The volume is concentrated on Asian exchanges, with no BTC or USD pairs appearing in ETC's top 5. Between Bithumb, CoinOne, and Korbit, ETC/KRW accounts for more than $243 million in volume. ETC/CNY, meanwhile, adds up to more than $180 million.