Cryptocurrencies have been the best performing assets on the market this year. In the last six months, the prices of Bitcoin (BTC) and Ether (ETH) have risen more than 140 and 260%, respectively. Meanwhile, the S&P 500 index has risen just 10%.

Ethereum Classic News: Why Has ETC Underperformed?

Ethereum Classic has been acting a little disappointing, having lost more than 45% of its value this year. As a result, its market capitalization drops to just $ 679 million, making it the 34th largest coin in the world, while promising youngsters are now in the spotlight.

This low performance is mainly due to poor adoption by users, as most developers prefer to make applications using the price ethereum network. This was seen during the boom in initial new coin offerings (ICOs) and the current growth of the DeFi sector. So far, most ICOs have been developed using the Ethereum network.

The Ethereum Classic has been fighting the increasing number of attacks on the network. In August of this year, it suffered several attacks that disrupted more than 10,000 blocks of the network. Although Ethereum Classic Labs and other developers are trying to prevent these incidents from happening, the consequence is that most programmers and miners are not comfortable using the network.

Analysts believe those attacks will continue unless the network switches from Proof of Work (PoW) to Proof of Stake (PoS). In the first, new coins are created through mining, while in the second, a sequence of steps is used to create new coins.

ETC Analyst Price Prediction: Is Ethereum Classic A Good Buy For 2021?

Long Forecast, an online forecasting service, also projects that ETC will continue to struggle next year. The estimate shows that the highest price ethereum coin will reach in 2021 will be $ 8.44 at the beginning of the year. This implies a 30% increase from the current level.