Ethereum Classic (CRYPTO: ETC) has surged 24% to $26.89 this week, fueled by investor optimism in the cryptocurrency market.

This rally comes amid Bitcoin's historic climb toward $100,000 and rising institutional interest across digital assets, signaling renewed confidence in Ethereum Classic's long-term prospects.

What To Know: The gains for ETC align with broader enthusiasm for Ethereum (CRYPTO: ETH), which is experiencing strong speculation about its ability to hit $4,000 this November.

Ethereum Classic, often considered the original Ethereum blockchain following the 2016 hard fork, is benefiting from renewed attention to Ethereum-based ecosystems as developers and investors explore its potential for decentralized applications (dApps) and smart contracts.

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What Else: Another factor boosting ETC is its correlation with Ethereum's proof-of-stake (PoS) transition. Since Ethereum's move to PoS with the Merge, some miners have shifted resources to Ethereum Classic, strengthening its hash rate and security. This enhanced network robustness is likely contributing to increased investor confidence.

The current rally also ties into macroeconomic conditions, with easing global monetary policies encouraging capital flows into riskier assets, including cryptocurrencies.

Additionally, rising institutional activity, including surging Bitcoin ETF inflows, has amplified interest in altcoins like Ethereum Classic.

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