Bitcoin Cash Dominates Crypto Scene With Record-Breaking Bets
- Open interest in Bitcoin Cash (BCH) futures surged to May 2021 levels.
- BCH prices have doubled in a week, becoming a top-performing token.
- Most of the trading interest arose from the crypto exchange Binance.
Bitcoin Cash (BCH) tokens has surged to May 2021 levels as the Bitcoin offshoot network experiences a revival of activity and value.
The growth in BCH prices has helped it become one of the top-performing tokens above a $1 billion market capitalization. Bitcoin (BTC) and ether (ETH) also saw growth in this period, with BTC adding 13% and ETH adding 8%. All these developments have led to traders taking an interest in BCH.
BCH has surged to over $400 million on Monday from just $75 million the week prior, indicating that new money is flowing into the market or that existing participants are increasing their allocation. This metric can be used as an indicator to determine market sentiment and the strength behind price trends.
There are a few reasons why this sudden interest in BCH has arisen. A network upgrade and an influential exchange listing are believed to have served as two key catalysts. Bitcoin Cash underwent a network hard fork in May, which helped improve the security and privacy of the fledgling network and introduced plans for “CashTokens”. These tokens are a scaling system that would allow developers to build decentralized applications directly on the Bitcoin Cash blockchain.
There have been other improvements such as the introduction of smaller transaction sizes, which help speed up transactional times. There are also smart contracts, which will allow Bitcoin Cash-based applications to offer recurring payments, derivatives trading, and crowdfunding opportunities, among other uses, to Bitcoin Cash users.
The launch of EDX Markets has also likely benefited BCH. The new exchange is backed by traditional finance heavyweights Fidelity Digital Assets, Charles Schwab, and Citadel Securities, and opened trading last Tuesday, supporting BCH along with bitcoin (BTC), ether (ETH), and litecoin (LTC).
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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