Over the past decade, Ethereum Classic (ETC 1.22%) is up an impressive 557%. That might sound like a good reason to add it to your crypto portfolio immediately.
However, if you dig a bit deeper, you'll soon realize that Ethereum Classic is not nearly as enticing an investment as it might appear at first. If you're thinking about investing in Ethereum Classic now, here's what you need to know.
Head-to-head with Ethereum
Although their names are similar, Ethereum Classic is not the same as Ethereum (ETH 1.12%). And it has come nowhere close to replicating the unbelievable success of Ethereum over the past 10 years. Just look at the following chart.
Ethereum / US Dollar chart by TradingView.
Ever since the hard fork of the Ethereum blockchain network back in 2016, Ethereum has absolutely trounced the performance of Ethereum Classic. Yes, Ethereum Classic might be up 557% during that time period. But Ethereum is up a head-spinning 22,620%.
When you compare the charts of these two cryptocurrencies, Ethereum Classic looks like it has been running in place for the past decade. And there's a good reason for that: Ethereum Classic has failed to evolve as quickly as Ethereum, and therefore, has been unable to take advantage of enormous changes taking place within the cryptocurrency market.
Image source: Getty Images.
Case in point: Ethereum Classic still uses an old proof-of-work consensus mechanism that was popular a decade ago, while Ethereum has since moved on to a proof-of-stake consensus mechanism that makes the blockchain faster, cheaper, and easier to use.
The case for investing in Ethereum Classic
Of course, there are legitimate reasons why an investor might choose Ethereum Classic over Ethereum.
CRYPTO: ETC
Key Data Points
For example, Ethereum Classic offers a fixed coin supply of just 210 million coins, and that makes it potentially a better hedge against inflation. All the Ethereum Classic that will ever exist already exists. In contrast, the coin supply of Ethereum continues to rise over time, and there is no upward limit on how much Ethereum can ever exist.
Better investment options out there
If you are determined to invest in a proof-of-work cryptocurrency with roots reaching back to 2016, there are better options. Bitcoin (BTC 1.67%), for example, has absolutely obliterated the performance of Ethereum Classic over the past decade. Even Litecoin (LTC 1.24%) has outperformed Ethereum Classic over that time period.
All of which is to say: As an investor, you can find better options elsewhere. For now, Ethereum Classic is a clear sell. It's one cryptocurrency I wouldn't want to have in my portfolio in 2026.
