What could affect the price of ETC?

Ethereum Classic is navigating a mix of upcoming protocol improvements and market challenges.

1. Olympia Upgrade (2026) – Introducing fee burns and decentralized governance that could reduce supply
2. Tether Exit – USDT stablecoin support ending on ETC’s network may reduce liquidity through 2025
3. Proof-of-Work (PoW) Regulatory Outlook – Balancing risks from regulations with Hong Kong’s supportive mining policies

Deep Dive

1. Protocol-Level Funding Reform (Positive Outlook)

Overview:
The Olympia Upgrade, expected in late 2026, will implement a system similar to Ethereum’s EIP-1559 fee burns. About 80% of the base transaction fees will be sent to a decentralized treasury managed by the Olympia DAO (ECIP-1111). This approach aims to reduce the total supply of Ethereum Classic tokens while giving the community more control over the project’s future.

What this means:
Ethereum’s fee burn mechanism has removed roughly 4.2 million ETH (worth about $17 billion) from circulation since 2021. If Ethereum Classic achieves even 10% of that burn rate relative to its current market cap of $3.17 billion, the reduced supply could boost prices when demand rises.

2. Stablecoin Liquidity Drain (Negative Outlook)

Overview:
Tether plans to stop supporting USDT on the Ethereum Classic network by the third quarter of 2025 (Bitget). This will remove approximately $58 million in stablecoin liquidity. Currently, Ethereum Classic’s trading volume relative to its market cap (turnover ratio) is 4.6%, which is lower than Ethereum’s 9.1% and Binance Coin’s 12.3%.

What this means:
Since 63% of Ethereum Classic’s trading pairs involve stablecoins (CoinMarketCap), losing USDT support could lead to higher price slippage for large trades. However, wrapped ETC (WETC) tokens that connect to Ethereum’s network might help by allowing liquidity to move into decentralized finance (DeFi) platforms.

3. Proof-of-Work Regulatory Crosswinds (Mixed Outlook)

Overview:
Hong Kong’s new Web3 regulations are encouraging PoW projects like Ethereum Classic (Crypt0_DeFi), while the European Union’s Markets in Crypto-Assets (MiCA) rules may require miners to disclose energy usage by 2026.

What this means:
Mining-friendly policies in Asia could attract Bitcoin and Ethereum miners looking for supportive environments, potentially increasing Ethereum Classic’s mining power (currently about 158 terahashes per second). On the other hand, stricter energy reporting could raise costs and slow institutional interest in regulated regions.

Conclusion

Ethereum Classic’s path through 2025 and 2026 depends on successfully implementing the Olympia Upgrade’s supply controls while managing liquidity shifts and evolving mining regulations. The current price of $20.65 reflects caution about liquidity challenges, but effective decentralized governance could renew developer and investor enthusiasm, similar to what was seen during Ethereum’s 2016 split.

Key watchpoint: Will Ethereum Classic’s burn address hold more than 1% of the total supply by the time the Olympia Upgrade launches in 2026?

What are people saying about ETC?

Ethereum Classic’s community is debating whether sticking strictly to its original code is more important than reacting to price changes, all while preparing for a major upgrade to its network. Here’s what’s trending:

1. Positive signs after breaking a key price level at $24.55
2. Warnings of a potential drop if the price falls below $20
3. Excitement around the Olympia Upgrade, which aims to improve decentralized governance

Deep Dive

1. @Crypt0_DeFi: “Code Is Law” philosophy remains strong — bullish

“Ethereum Classic chose not to erase the DAO hack history, showing true decentralization. This is more than technology; it’s a principle.”
– @Crypt0_DeFi (12.3K followers · 48K impressions · 2025-09-09 07:00 UTC)
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What this means: ETC stands out as a blockchain that won’t change its history, which appeals to those who value strict decentralization. However, this approach limits flexibility compared to Ethereum’s newer system, which uses a different method called Proof of Stake (PoS).

2. @EthClassicDAO: Olympia Upgrade proposal — bullish

“Introducing the first on-chain decentralized autonomous organization (DAO) for Proof of Work Ethereum! Features include fee burning and redirecting funds through EIP-1559, aiming for mainnet launch in late 2026.”
– @EthClassicDAO (8.1K followers · 22K impressions · 2025-07-01 22:51 UTC)
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What this means: This upgrade could reduce the number of coins being sold (by burning fees) and encourage more developers to work on ETC by providing decentralized funding. This is important because ETC’s ecosystem has been relatively quiet lately.

3. CoinMarketCap: Technical analysis warns of a drop to $19.62 — bearish

“ETC is struggling to stay above $20.25 and is making lower highs. If buyers can’t hold $21.50, a further drop is likely.”
– CMC Community Post (366K views · 2025-08-01 11:30 UTC)
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What this means: The price has fallen about 16% over the past two months, showing that traders are unsure if ETC can benefit from upcoming upgrades, especially as many alternative cryptocurrencies are also weak.

Conclusion

The outlook for Ethereum Classic ($ETC) is mixed. On one hand, it has strong support from those who believe in its “Code Is Law” philosophy. On the other, technical indicators suggest caution with the price testing important support levels around $20. The upcoming Olympia Upgrade could help ETC’s long-term growth, but traders will be watching closely how the market reacts when it launches on the mainnet in 2026. A successful upgrade might help ETC close the value gap with Ethereum, which currently trades at about 1 ETC for every 150 ETH.

What is the latest news about ETC?

Ethereum Classic is making important moves with new strategies and technical updates, even as the market shows mixed signals. Here’s a quick summary of the latest news:

1. Expansion in Hong Kong (September 15, 2025) – ETC is focusing on Asia’s clearer blockchain rules to grow its Proof of Work network.
2. USDT Support Ends (August 30, 2025) – Tether is stopping USDT transactions on ETC, which could affect liquidity.
3. Olympia Upgrade Update (July 1, 2025) – New protocol funding and decentralized governance aim to strengthen ETC’s community control.

In-Depth Look

1. Expansion in Hong Kong (September 15, 2025)

What’s happening:
Ethereum Classic is taking advantage of Hong Kong’s new Web3 regulations, which cover stablecoins and staking. This creates a clearer legal environment for blockchain projects. The ETC Grants DAO (EGD) is leading innovation efforts, supported by a $10 million investment from BITMAIN and ANTPOOL.

Why it matters:
This is good news for ETC because clear rules can attract more investors and developers. ETC’s focus on Proof of Work supports its core principles of decentralization and security, setting it apart from other blockchains that use Proof of Stake. (Crypt0_DeFi)

2. USDT Support Ends (August 30, 2025)

What’s happening:
Tether is removing USDT support from Ethereum Classic, as part of a larger move away from five blockchains. This could reduce the availability of USDT for trading and decentralized finance (DeFi) on ETC.

Why it matters:
This is a short-term challenge for ETC because less USDT liquidity might make trading more expensive and complicated. However, since ETC uses its own token for transaction fees, this change might encourage more use of ETC’s native token if the network continues to grow. (Bitget)

3. Olympia Upgrade Update (July 1, 2025)

What’s happening:
The Olympia Upgrade brings new features like fee burning (similar to Ethereum’s EIP-1559) where 80% of base fees go into a treasury, and on-chain governance through a decentralized autonomous organization (DAO). Testing started in July, with full rollout expected by late 2026.

Why it matters:
This upgrade could be positive in the long run by reducing token inflation and giving the community more control over the network. However, since the full upgrade won’t launch until later, immediate effects are limited. (EthClassicDAO)

Conclusion

Ethereum Classic is navigating a mix of opportunities and challenges. While Tether’s withdrawal may create short-term liquidity issues, the regulatory progress in Hong Kong and the Olympia Upgrade’s focus on decentralization show ETC’s dedication to its core values. The key question is whether new funding and governance will attract enough developers to balance out market uncertainties.

What is expected in the development of ETC?

Ethereum Classic’s future is guided by decentralized community decisions, focusing on these key projects:

1. Olympia Upgrade (End of 2026) – New system for funding and community governance.
2. ETC Grants DAO Growth (Ongoing) – Supporting projects that expand the ecosystem.
3. Strengthening Proof of Work (Ongoing) – Improving security and keeping the network decentralized.

In-Depth Look

1. Olympia Upgrade (End of 2026)

What it is:
The Olympia Upgrade brings four important changes to how Ethereum Classic operates:

• ECIP-1111: Activates a fee system where 80% of transaction fees are permanently removed (“burned”) and 20% go into a community treasury.
• ECIP-1112/1113: Sets up an on-chain Decentralized Autonomous Organization (DAO) so $ETC holders can vote on network decisions.
• ECIP-1114: Creates a way for community projects to get funding automatically through a permissionless process.

After community feedback, these changes will be tested on a test network before launching on the main network by late 2026.

Why it matters:
This upgrade is positive for Ethereum Classic because it solves funding problems, lowers inflation by burning fees, and gives the community more control. However, there could be delays or technical challenges during implementation.

2. ETC Grants DAO Growth (Ongoing)

What it is:
The ETC Grants DAO (EGD) manages a $10 million fund from BITMAIN/ANTPOOL to support projects that make Ethereum Classic more useful, especially as a censorship-resistant smart contract platform. They focus on developer tools, connecting with other blockchains, and expanding in Asia’s regulated Web3 markets.

Why it matters:
This is generally positive—funding encourages innovation, but success depends on attracting developers in a competitive environment dominated by other Ethereum Virtual Machine (EVM) chains. Progress in places like Hong Kong’s regulatory landscape could help increase adoption.

3. Strengthening Proof of Work (Ongoing)

What it is:
Ethereum Classic continues to rely on Proof of Work (PoW) for security. Since Ethereum’s shift away from PoW, many miners have moved to ETC, increasing its mining power by about 300 times since 2021. Updates like fixing the block size to 8 million gas aim to limit miners’ control over network rules.

Why it matters:
This strengthens decentralization and network security, which is good for ETC. But there’s still skepticism about PoW’s environmental impact and efficiency. The network is more resistant to attacks, though some exchanges, like Coinbase, require long wait times for transaction confirmations (around 11 hours).

Conclusion

Ethereum Classic’s plan combines technical upgrades like Olympia with community-driven growth, staying true to its “Code is Law” principle. While the decentralized approach can create uncertainty, initiatives like the ETC Grants DAO and Olympia upgrade may help Ethereum Classic maintain its unique position as a Proof of Work smart contract platform.

The big question: How will Ethereum Classic stand out as more EVM-compatible blockchains switch to Proof of Stake (PoS)?

What updates are there in the ETC code base?

Ethereum Classic’s technology is moving toward decentralized control and funding.

1. Olympia Upgrade (End of 2026) – Adds on-chain governance through a decentralized autonomous organization (DAO) and changes how fees are handled.
2. MetaMask Integration (July 3, 2025) – Makes it easier for users to connect to the Ethereum Classic network using MetaMask.

Deep Dive

1. Olympia Upgrade (End of 2026)

Overview:
The Olympia Upgrade will create a decentralized treasury and governance system. This means holders of Ethereum Classic (ETC) tokens can vote on how funds are used to support the network.

Key features:

• ECIP-1111: Introduces a system where part of the transaction fees are permanently removed ("burned"), and the rest go into a treasury fund.
• ECIP-1113: Establishes the Olympia DAO, allowing token holders to participate in decision-making for the protocol.

Why it matters:
This upgrade is positive for Ethereum Classic because it gives the community control over funding, reducing dependence on outside grants. It encourages long-term growth and development. Node operators will need to update their software before the upgrade to keep running smoothly.
(Source)

2. MetaMask Integration (July 3, 2025)

Overview:
Ethereum Classic is now directly supported by MetaMask, a popular digital wallet. Previously, users had to manually add the ETC network to MetaMask to use decentralized finance (DeFi) apps.

Why it matters:
This change makes it easier for people to use Ethereum Classic, potentially increasing activity in trading and NFTs. However, it doesn’t change the underlying technology or rules of the network.
(Source)

Conclusion

The Olympia Upgrade represents a big step toward community-led governance and funding for Ethereum Classic. Meanwhile, MetaMask integration improves accessibility for users. The key question is whether on-chain DAO governance can attract developers while keeping Ethereum Classic’s core principle of “Code is Law” intact.

Why did the price of ETC fall?

Ethereum Classic (ETC) dropped 0.63% in the last 24 hours, slightly underperforming the overall crypto market, which fell 0.66%. This decline matches expected technical resistance levels and comes after Tether withdrew its USDT stablecoin from the ETC blockchain, reducing liquidity.

1. Tether’s USDT Phase-Out – Tether stopped supporting USDT on ETC, raising short-term concerns about liquidity.
2. Security Concerns Spillover – A recent 51% attack on Monero has renewed worries about the security of Proof-of-Work (PoW) blockchains like ETC.
3. Technical Resistance – ETC failed to stay above $21.50 support, with mixed signals from momentum indicators.

Deep Dive

1. Tether’s USDT Withdrawal (Bearish Impact)

Overview:
On August 30, 2025, Tether announced it would stop supporting USDT on Ethereum Classic, as part of a broader move affecting five blockchains (source). USDT made up 53% of the stablecoin liquidity on ETC.

What this means:
With less USDT available on ETC, trading liquidity may decrease, which can lead to higher price slippage—meaning trades could become more expensive or less efficient. Similar past events, like Tether’s exit from Algorand in 2023, caused trading volumes on those chains to drop by 15–30% within weeks.

What to watch:
Since the announcement, ETC’s 24-hour trading volume has already fallen 18% to $147 million. If volumes stay below $150 million, price swings could become more pronounced.

2. Security Concerns Spillover (Mixed Impact)

Overview:
A 51% attack on Monero on August 18 (Yahoo Finance) brought back memories of Ethereum Classic’s three 51% attacks in 2020, which resulted in over $6 million in losses.

What this means:
Although ETC’s mining power (hashrate) has doubled since 2024 to 259 terahashes per second, investors remain cautious about PoW blockchains. This fear has led to some selling, even though ETC itself has not been directly attacked recently.

3. Technical Resistance (Neutral/Bearish)

Overview:
ETC is facing resistance at the 23.6% Fibonacci retracement level of $24.09. The 7-day Relative Strength Index (RSI) is neutral at 50.28, and the Moving Average Convergence Divergence (MACD) shows a bullish crossover (+0.023) but lacks strong confirmation.

What this means:
Traders likely took profits near the 7-day Simple Moving Average (SMA) at $21.15, similar to a previous rejection at $22.16 on July 31. If ETC closes below the pivot point of $20.97, it could signal further downward movement.

Conclusion

The recent dip in ETC’s price reflects a combination of lower liquidity due to Tether’s USDT withdrawal, broader security concerns in the PoW sector, and uncertain technical signals. While Tether’s exit creates short-term challenges, ETC’s upcoming Olympia protocol upgrade, expected in late 2026, aims to improve governance and address deflationary issues.

Key watch: Can ETC maintain support at the $20.06 Fibonacci swing low? A break below this level might lead to a retest of September’s $19.62 support. Watch for hourly closes under $20.50 as confirmation of bearish momentum.