Bitcoin Cash (BCH) Bullish Momentum Continues? The reason is here

Highlights:

• Bitcoin Cash Hits Yearly High of $320
• Bitcoin Cash Hashrate and Mining Difficulty Hit New Highs in Nearly Two Years
• EDX Markets Launch Boosts Bitcoin Cash Rally

Bitcoin Cash Rise

June has been an amazing month for the Bitcoin Cash (BCH) community and investors. The unexpected bullish momentum has pushed the price of BCH to unprecedented heights. BCH prices have doubled in the past week, making it one of the top 20 performing coins by market capitalization.

On the last day of June 2023, Bitcoin Cash hit a yearly high of $320, a little shy of a 200% increase from $110, its opening price on the first day of the same month. The Bitcoin Cash market cap has also blown past $6 billion during this time. Daily trading volume has also grown from an average of $52 million to over a billion dollars in the closing weeks of the month, an over 20X increase. The month of June has been an interesting one for the Bitcoin Cash community and investors.

Additionally, on-chain metrics are moving in a similar direction.

According to Tokenview, the number of Bitcoin Cash holders has exceeded 21.81 million, and the total number of transactions has reached 370 million.

Since mid-June, Bitcoin Cash hashrate and mining difficulty have risen sharply, hitting a new high in the past two years. The hashrate will exceed 5.04 (EH/s) on June 30, 2023. The increase in hashrate means that the BCH network is becoming more and more secure as miners move to the blockchain. The difficulty of mining also followed, jumping to more than 450G in less than a day.

The latest data on-chain shows that in July, the single-day transaction fee of Bitcoin Cash has soared twice, hitting a new high in the past year. It reached 3.9BCH on July 6th and 4.3BCH on July 12th.

The reason for rise

Several key factors have contributed to the dramatic price increase.

First, the news of BlackRock filing for a spot Bitcoin ETF sparked optimism and set off a domino effect.

Second, BCH has also likely benefited from the launch of EDX Markets. BCH was listed on the EDX Markets exchange, sparking market interest and accelerating its upward trend. Four cryptoassets are listed on the EDX Markets platform, including Bitcoin, Ethereum, Litecoin and Bitcoin cash. Listing on EDX Markets is a positive development for Bitcoin Cash.

In addition, Bitcoin Cash underwent a network hard fork in May, which improved the security and privacy of the emerging network, and launched the Token issuance function “CashTokens” and support for smart contracts, allowing developers to directly build decentralized applications on the blockchain.

Since the update was released, network transaction activity has increased, which has increased demand for BCH.

How Bitcoin Cash Works

Bitcoin Cash retains many features of the original Bitcoin blockchain. It retains the proof-of-work consensus mechanism (PoW), and most of the initial miners on the network come from the original Bitcoin network. BCH is distributed to Bitcoin holders at a ratio of 1:1, which means that each Bitcoin holder is entitled to one BCH token for every Bitcoin held. The total supply of Bitcoin Cash is also set at 21 million. However, in order to achieve a faster and more flexible system, Bitcoin Cash does many different things.

Such as enlarged block size. The block size of the Bitcoin blockchain is only 1MB; this allows it to contain only about 1,200 transactions per block, and confirm only 7 transactions per second. As an improvement on this, Bitcoin Cash introduced larger block sizes, initially 8MB and then expanded to the current 32MB. This block size supports over 25,000 transactions and enables the Bitcoin Cash blockchain to confirm approximately 100 transactions per second, 14 times faster than the Bitcoin blockchain. Bitcoin Cash also offers a cheaper way to conduct peer-to-peer transactions, with fees as low as fractions of a cent.

key Event

Bitcoin Cash was forked from Bitcoin and designed to be more scalable, cheaper and faster to use as an electronic cash system than Bitcoin.

After several years of smooth operation of Bitcoin, many developers working on the original Bitcoin protocol felt that the project strayed from founder Satoshi Nakamoto’s vision for the cryptocurrency — — cheap, decentralized payment system. The internal conflict came to a head in 2017, when the bitcoin blockchain split in two and Bitcoin Cash emerged as a separate blockchain.

In November 2018, Bitcoin Cash underwent a hard fork, resulting in two different versions of Bitcoin Cash ABC and Bitcoin Cash SV. In May 2023, Bitcoin Cash will complete the hard fork upgrade, support the execution of smart contracts, and allow developers to develop dapps on BCH. This makes Bitcoin Cash more similar to Ethereum in terms of potential applications.