- After the halving, the price of BCH shot up to $700, but it has since dropped by more than 6%.
- Bitcoin Cash forks from Bitcoin to be faster and cheaper, but its market size is still low.
Recent events have brought Bitcoin Cash (BCH) back into the spotlight. The second BCH network halving event reduced miners’ payouts for creating new blocks from 6.25 BCH to 3.125 BCH.
Just weeks before Bitcoin’s quadrennial halving, this occurrence shook the market and caused price changes, in line with what ETHNews previously disclosed.
Event of Halving Triggers Price Rally
After the halving, the price of Bitcoin Cash had a remarkable surge, reaching heights not seen before 2021. BCH’s price rose to about $690.97, marking a small increase of 1.92% over the previous 24 hours, according to CoinGecko.
Before stabilizing at $690, this rise peaked at about $700 in the wee hours of Friday. In spite of this, the price has experienced a decline of almost 6% within the last week.
The way prices moved after the halving is evidence of how erratic cryptocurrencies can be. Despite a notable increase, BCH is still far from its all-time high of almost $9,500 in 2017.
The reduction in block rewards is a fundamental change that typically affects the market dynamics of proof-of-work cryptocurrencies, as demonstrated by prior halving events across various blockchain networks. Watch the video on YouTube below to go deeper into this development.
Bitcoin Cash: A Bitcoin Alternative
Developed as a cheaper and speedier alternative to Bitcoin, Bitcoin Cash was hard forked from the Bitcoin blockchain in 2017. The main catalyst for this schism was the divergence of opinion within the Bitcoin community concerning scalability solutions.
Since then, BCH has worked hard to become a respectable digital currency by putting an emphasis on fewer transaction costs and quicker processing times.
Perspectives on Comparative Markets
Bitcoin Cash’s market capitalization, at about $13.8 billion, is far smaller than Bitcoin’s enormous $1.3 trillion market cap, even with the recent price surge. Nonetheless, the split blockchain has demonstrated tenacity and steady expansion, mirroring certain fluctuations in the Bitcoin market.
This simultaneous expansion demonstrates how the cryptocurrency market is interrelated, with significant developments on one blockchain having an impact on others.