Ethereum
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ETH · 4w

On-chain metrics show major differences between Ethereum and Ethereum Classic

Analysts tend to compare Ethereum and Ethereum Classic in terms of their technicalities and price action. However, IntoTheBlock took a different approach to determine the fundamental differences between the two.

Ethereum vs. Ethereum Classic

In a recent blog post, Nicolas Contasti, head of business development at machine learning and statistical modeling firm IntoTheBlock, explained how Ethereum and Ethereum Classic differ from a fundamental perspective. Using an on-chain analytics approach, Contasti evaluated which of these two cryptocurrencies represented a better investment vehicle.

A glimpse at IntoTheBlock’s dashboard, for instance, reveals that ETH has a market cap and price 26 times higher than ETC, according to Contasti. The former is also more correlated to Bitcoin and the number of larger transactions taking place on its network is significantly higher than the latter.

ETH vs. ETC by IntoTheBlock

A deeper dive into the In/Out of the Money (IOM) indicator portrays a bigger difference between these cryptocurrencies. This fundamental index provides a “holistic view” of how well investors are doing by holding these digital assets.

Contasti explained:

“In a nutshell, [the IOM] averages all on-chain positions, compares them to the current price, and through a Machine Learning algorithm, it organizes the data into the 10 most significant groups in terms of both addresses and volume of tokens. Those addresses above the current price are those ‘In the Money’, where those that have a dollar average balance below current price are said to be ‘Out of the Money’.”

The IOM shows that approximately 47 percent of all addresses holding Ethereum have a positive balance. Thus, these market participants are considered to be “in the money.” Meanwhile, roughly 36 percent of the addresses holding Ethereum Classic has a positive balance.

Although the difference between investors that are in profits is of about 10 percent, the activ...

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