What is expected in the development of ETC?

Ethereum Classic’s development is guided by its community, focusing on decentralized decision-making. Here’s what’s ahead:

1. Olympia Upgrade (End of 2026) – Introducing on-chain governance and a treasury system controlled by the community.
2. Layer 2 Integration (Ongoing) – Adding technology that helps the network handle more transactions efficiently.
3. Network Security Enhancements (2025–2026) – Improving mining processes and protecting the network’s security.

In-Depth Look

1. Olympia Upgrade (End of 2026)

What It Is
The Olympia Upgrade, explained in ECIP-1111 to ECIP-1114, brings new ways for the community to manage Ethereum Classic’s future and funds. Key points include:

• EIP-1559 fee reform: 80% of transaction fees go into a transparent, on-chain treasury.
• Community voting: ETC holders can vote on how funds are spent through the Olympia DAO.
• Secure treasury: Money is clearly allocated to developers, security audits, and growing the ecosystem.

Why It Matters
This upgrade helps make Ethereum Classic financially sustainable and less dependent on outside funding. It encourages long-term growth by involving the community directly. However, disagreements or delays in decision-making could slow progress.

2. Layer 2 Integration (Ongoing)

What It Is
Ethereum Classic supports the Ethereum Virtual Machine (EVM), which means it can use Layer 2 solutions like Optimistic Rollups and zk-Rollups. These technologies help process more transactions faster and cheaper by handling some work off the main network. Developers are also working on bridges that connect Ethereum Classic with other blockchains.

Why It Matters
This could increase Ethereum Classic’s usefulness by making transactions quicker and less expensive. But success depends on outside developers choosing to build these solutions for Ethereum Classic, which faces competition from bigger networks like Ethereum.

3. Network Security Enhancements (2025–2026)

What It Is
As Ethereum moves fully to Proof-of-Stake, Ethereum Classic could attract miners who use GPUs (graphics cards) to secure the network. Planned improvements include:

• Mining algorithm updates: Making mining more efficient for newer hardware.
• Versioned EVM: Ensuring smart contracts keep working smoothly during upgrades.

Why It Matters
If more miners join Ethereum Classic, the network becomes more secure. But other Proof-of-Work blockchains, like Kaspa, are also competing for these miners, which could limit the benefits.

Conclusion

Ethereum Classic’s future depends on community-led governance through the Olympia Upgrade and building on its Proof-of-Work and EVM strengths to grow and scale. While the timeline isn’t fixed, the project focuses on steady, carefully reviewed improvements. The big question remains: Can Ethereum Classic’s “slow and steady” strategy attract developers in a fast-moving crypto world?

What updates are there in the ETC code base?

Ethereum Classic’s software is evolving to support decentralized decision-making and new ways to fund the network.

1. Olympia Upgrade Proposal (July 2025) – Adds DAO governance and a protocol-level treasury.
2. EVM EOF Compatibility (2024) – A backward-compatible update that improves smart contract efficiency.

Deep Dive

1. Olympia Upgrade Proposal (July 2025)

Overview:
The Olympia Upgrade includes four Ethereum Classic Improvement Proposals (ECIPs) designed to decentralize how the network is funded and governed. One key change is redirecting the base fees from EIP-1559 transactions into a treasury fund. It also introduces on-chain governance through a Decentralized Autonomous Organization (DAO).

This upgrade addresses the problem of centralized funding by allowing $ETC holders to vote on funding proposals through the Ethereum Classic Funding Proposal (ECFP) process. The upgrade is currently being tested on the Mordor testnet and aims for mainnet launch in late 2026.

What this means:
This is positive news for Ethereum Classic because it creates a sustainable, community-driven funding model. It reduces dependence on outside grants and strengthens ETC’s core value of decentralization by giving stakeholders direct control over protocol upgrades.
(Source)

2. EVM EOF Compatibility (2024)

Overview:
In early 2024, Ethereum Classic adopted the Ethereum Virtual Machine Object Format (EOF) upgrade to stay compatible with Ethereum’s Cancún hard fork. This update improved how smart contract code is validated and optimized gas usage, making contracts more efficient.

What this means:
This update is neutral in terms of innovation but important for technical compatibility. It allows developers to easily move decentralized applications (dApps) from Ethereum to Ethereum Classic, helping both ecosystems work better together.

Conclusion

Ethereum Classic is carefully balancing its commitment to immutability with selective upgrades that support growth. The Olympia DAO and treasury system could empower community-led development, while EVM compatibility keeps ETC technically relevant. A key question remains: how will ETC’s Proof-of-Work model adapt as more institutions favor staking-based blockchains?

Why did the price of ETC fall?

Ethereum Classic (ETC) dropped 26.55% in the last 24 hours, falling more than the overall crypto market, which declined by 10.14%. The main reasons include Tether stopping USDT support on ETC, negative technical signals breaking important price levels, and increased market fear.

1. Tether’s USDT withdrawal – ETC loses a key source of trading liquidity.
2. Technical breakdown – Price fell below important Fibonacci levels and moving averages.
3. Market sell-off – Crypto Fear & Greed Index shows “Fear” at 35.

Deep Dive

1. Tether’s USDT Withdrawal (Negative Impact)

What happened: On August 30, Tether announced it will no longer support USDT on Ethereum Classic, along with several other blockchains like Algorand and Solana (source). Following this, ETC’s trading volume surged by 463% to $708 million, likely due to traders rushing to sell as USDT liquidity dries up.

Why it matters: USDT was a major trading pair for ETC, providing easy access for stablecoin trades, arbitrage, and decentralized finance (DeFi) activities. Without USDT, it becomes harder to trade ETC smoothly, reducing demand and putting downward pressure on the price.

What to watch: If exchanges start removing ETC/USDT trading pairs, expect more selling pressure.

2. Technical Breakdown (Negative Impact)

What happened: ETC’s price fell below the key 61.8% Fibonacci retracement level at $14.92 and its 30-day simple moving average (SMA) at $19.56. The Relative Strength Index (RSI) is at 25.78, indicating the coin is oversold, but the MACD indicator shows no signs of a price rebound yet.

Why it matters: Breaking below $14.92 likely triggered more selling from technical traders. The next important support level is the 78.6% Fibonacci retracement at $12.86. Since ETC’s price is 29% below its 200-day exponential moving average (EMA) of $20.31, a quick recovery seems unlikely unless the overall market improves.

3. Altcoin Sell-Off (Mixed Impact)

What happened: The total cryptocurrency market value dropped 10% in 24 hours, while Bitcoin’s market dominance rose to 60.04%. ETC’s price movement is closely linked to Bitcoin, with a 30-day correlation of 0.89, meaning it tends to follow Bitcoin’s trends.

Why it matters: During times of market stress, investors often sell riskier altcoins like ETC and move their funds into Bitcoin, which is seen as a safer asset. The Altcoin Season Index, which measures how altcoins perform relative to Bitcoin, fell to 34, down 47% over the past month, showing money is moving away from mid-sized coins like ETC.

Conclusion

ETC’s sharp decline is due to a combination of specific risks related to Tether stopping USDT support and broader market challenges like reduced liquidity and rising Bitcoin dominance. Although technical indicators suggest ETC might be oversold and could bounce back, losing USDT support creates a strong bearish trend.

Key level to watch: Can ETC hold above the $12.86 Fibonacci support? If it falls below this, the price could retest the $10.24 low seen earlier in 2024.

What could affect the price of ETC?

Ethereum Classic (ETC) is currently balancing between upcoming protocol upgrades and challenging market conditions.

1. Olympia Upgrade (2026) – Introducing DAO governance and fee burning could reduce supply.
2. Proof-of-Work (PoW) Sentiment – Regulatory support clashes with concerns over mining centralization.
3. Liquidity Challenges – Tether’s removal of ETC support and a 60% drop in trading volumes since 2025 highs.

In-Depth Analysis

1. Protocol Upgrades: What’s Changing?

The Olympia Upgrade, planned for late 2026, will burn 80% of transaction fees using a system similar to Ethereum’s EIP-1559, while 20% of fees will go to a decentralized treasury managed by a DAO (Decentralized Autonomous Organization). This aims to reduce the supply growth of ETC and fund ecosystem development.

Why it matters: Currently, ETC’s supply grows by about 3.2% annually. Reducing this growth could help support prices if more people start using ETC. However, daily trading volume for ETC is around $24 million, much lower than Ethereum’s $763 million, indicating less demand. Past price movements of ETC have closely followed Ethereum’s trends, with an 89% correlation in 2025 (CoinMarketCap).

2. Proof-of-Work: The Debate Continues

Ethereum Classic remains the largest Ethereum Virtual Machine (EVM)-compatible blockchain using Proof-of-Work (PoW) after Ethereum switched to Proof-of-Stake. This appeals to users who value decentralization and mining-based security. Additionally, Hong Kong’s supportive regulatory stance toward PoW could attract institutional investors from Asia.

Why it matters: Mining centralization is a concern, with AntPool controlling 38% of ETC’s mining power (CoinMarketCap). The “Code is Law” philosophy gained attention after Ethereum’s 2025 upgrade sparked debates about governance and control, reinforcing ETC’s position among decentralization advocates.

3. Liquidity Issues: A Growing Concern

In August 2025, Tether stopped supporting ETC on its USDT stablecoin, reducing ETC’s use in decentralized finance (DeFi). Spot trading volumes dropped sharply to $299 million in September 2025 from a peak of $1.6 billion in July. Derivatives trading also declined, with open interest down 64% from yearly highs.

Why it matters: Lower liquidity means ETC’s price can swing more wildly. Its 30-day price volatility is 87%, higher than Bitcoin’s 49% and Ethereum’s 62%. Currently, ETC trades around $14.54, close to a key technical support level at $14.92. If this support breaks, it could trigger a wave of forced selling.

Conclusion

Ethereum Classic’s future depends on successfully implementing the Olympia Upgrade’s supply controls while managing declining liquidity and market interest. The upgrade could be a positive catalyst, but recent technical indicators like the Relative Strength Index (RSI) at 30.85 and a 34% drop in quarterly returns suggest bearish momentum. Key factors to watch include the DAO’s ability to attract developers and the impact of Hong Kong’s regulatory policies. Keep an eye on the Mordor testnet launch and regulatory updates for signs of change.

What are people saying about ETC?

Ethereum Classic’s community is debating the value of its code versus its price, while traders focus on important price levels. Here’s what’s trending:

1. DAOs and deflation – The upcoming Olympia Upgrade brings hope for more decentralization
2. “Code is Law” supporters clash with traders who are bearish on the charts
3. Coinbase delays cause frustration despite excitement over Bitstamp listing

Deep Dive

1. @EthClassicDAO: Protocol-Level DAO Activation Looks Positive

“Olympia Upgrade introduces EIP-1559 fee burns + on-chain governance – mainnet target late 2026”
– @EthClassicDAO (12.3K followers · 38K impressions · 2025-07-01 22:51 UTC)
View original post
What this means: This is a positive long-term development. The upgrade could reduce the supply of Ethereum Classic by burning 80% of base transaction fees, while also supporting decentralized funding for development. However, since the mainnet launch is expected in late 2026, the immediate impact will be limited.

2. @Crypt0_DeFi: Ideals vs. Price Reality

“ETC’s refusal to reverse the DAO hack proved blockchain immutability matters more than convenience”
– @Crypt0_DeFi (8.1K followers · 24K impressions · 2025-09-09 07:00 UTC)
View original post
What this means: This highlights Ethereum Classic’s commitment to immutability — meaning once something is recorded on the blockchain, it can’t be changed. While this principle appeals to some, it hasn’t stopped ETC’s price from dropping 34% over the past 60 days amid broader market challenges.

3. CoinMarketCap Community: Technical Analysis Shows Bearish Signs

“ETC breaks $20 support – targets $19.62 if bears hold” (Technical analysis post)
– @AnonymousTrader (3.2K followers · 15K impressions · 2025-08-01 11:30 UTC)
View original post
What this means: In the short term, the price outlook looks negative. ETC has fallen to $14.54, down 24% since this analysis. However, the Relative Strength Index (RSI) is at 29.8, indicating the coin may be oversold and could see a price bounce soon.

Conclusion

The outlook for Ethereum Classic ($ETC) is mixed. Developers emphasize its strong commitment to immutability and decentralization, while traders are cautious due to weak price action. Keep an eye on whether ETC’s usual close relationship with Bitcoin (90-day correlation of 0.87) changes, especially if the Olympia testnets gain momentum. For now, ETC remains a volatile asset influenced by Bitcoin’s price moves and shifts in sentiment around Proof-of-Work mining.

What is the latest news about ETC?

Ethereum Classic is making progress with new regulations and upgrades but still faces challenges with liquidity. Here are the key updates:

1. UK Approves Crypto ETNs (October 9, 2025) – ETC can now be held tax-free in UK pensions and ISAs.
2. Olympia Upgrade Draft Released (July 1, 2025) – New governance and funding features proposed for the Ethereum Classic network.
3. Nabox Adds Cross-Chain Swaps (September 8, 2025) – ETC can now be easily exchanged across more than 40 different blockchains.

In-Depth Look

1. UK Approves Crypto ETNs (October 9, 2025)

What happened: The UK’s Financial Conduct Authority (FCA) has approved crypto Exchange-Traded Notes (ETNs) for everyday investors. This means people can now hold Ethereum Classic ETNs in tax-advantaged accounts like Individual Savings Accounts (ISAs) and pensions. These ETNs, such as those offered by ETC Group, are fully backed by the actual cryptocurrency and trade on the London Stock Exchange without leverage.
Why it matters: This development is generally positive for Ethereum Classic. It opens the door for traditional investors to get involved more easily and with tax benefits. However, major investment platforms like Hargreaves Lansdown have not yet started offering these ETNs, so wider adoption depends on how quickly these services roll them out. (CoinDesk)

2. Olympia Upgrade Draft Released (July 1, 2025)

What happened: The Ethereum Classic community proposed a set of upgrades called ECIP-1111 to 1114. These include a system similar to Ethereum’s EIP-1559 fee burning (where 20% of fees go to a treasury), on-chain governance through a decentralized autonomous organization (DAO), and new ways to fund development projects. Testing on a test network is planned for late 2025.
Why it matters: This is a positive long-term step for Ethereum Classic. It aims to solve ongoing funding challenges and modernize how the network is managed, all while keeping its proof-of-work (PoW) security model. However, the full upgrade won’t be live on the main network until late 2026, so immediate effects are limited. (EthClassicDAO)

3. Nabox Adds Cross-Chain Swaps (September 8, 2025)

What happened: Nabox Wallet now supports cross-chain swaps for Ethereum Classic, allowing users to move assets smoothly between over 40 blockchains, including popular ones like Solana and Polygon.
Why it matters: This improves Ethereum Classic’s ability to work with other blockchain networks, which is a good sign for its usability. However, its decentralized finance (DeFi) ecosystem is still small compared to competitors, so just enabling swaps may not be enough to boost long-term user activity without more decentralized apps (dApps). (Crypt0_DeFi)

Summary

Ethereum Classic is making strategic moves by gaining regulatory approval for tax-advantaged investment, planning important governance upgrades, and improving cross-chain compatibility. Still, liquidity concerns remain, especially after Tether stopped supporting ETC in August. The big question is whether institutional investments through UK pensions will balance out retail investors moving to other blockchains with higher returns.