Experts of the Chainalysis project analyzed the trade turnover of the most influential crypto payment services. It turns out that the number of transactions in Bitcoin Cash has dropped significantly.
“There are fewer users of Bitcoin Cash, fewer holders," says Kim Grauer, senior economist at Chainalysis.
After analyzing trade turnover of more than a dozen of the largest payment services, including BitPay, Coinify and GoCoin, the experts concluded that the volume of payments in Bitcoin Cash significantly decreased. Since January 2018, the value of Roger Ver’s cryptocurrency has dropped down by about 75%. In March, Bitcoin Cash turnover was $10.5 million, and in May it fell to $3.7 million. According to the expert, the decrease in the use of Bitcoin Cash is connected with the phenomenon of "concentrated possession": almost 56% of the cryptocurrency is controlled by 67 wallets that are not tied to crypto exchanges. Grauer assumes that the main traffic of the cryptocurrency in trade depends on the richest holders of BCH.
However, the altcoin is still one of the largest. Currently, according to CoinMarketCap, the cryptocurrency is in the fourth place among the most popular digital currencies. The price of the token is $536, and the market capitalization is $9 billion.
WHY IS IT IMPORTANT?
- Bitcoin Cash network plans to hardfork on November 15. Today Bitcoin ABC team has released an obligatory update 0.18.0 which has to be undertaken before 15 November in order to continue operating.
- Upgrade will allow access to third parties or decentralized data feed services as well as decentralized cryptocurrency-to-cryptocurrency trading, and the introduction of traditional transaction ordering. This system removes an entire class of scalability challenges in order to process very large blocks.