Bitcoin Cash price has skyrocketed by 37 per cent to breach the $700 levels suggesting a strong support for the new cryptocurrency from all corners.
It is for the first time that Bitcoin Cash has managed to rise so quickly and so high since shortly after its inception, the cryptocurrency didn’t garner enough attention.
Further, Bitcoin Cash trading volumes have gone parabolic. Up from around $100 million to above $1.6 billion, the highest level it has ever achieved and higher than eth’s current trading volumes. More than half a billion of it comes from South Korea alone and Bithumb specifically which has suddenly made a spectacular entrance. This has helped Bitcoin Cash enter the top three cryptocurrency charts overtaking ripple, rising to around 30 per cent of ethereum’s market cap, and just above 10 per cent of btc’s market cap.
One of the first reasons behind the massive surge is the successful mining of the first 8MB block. The block processed some 40,000 transactions without any network problem whatever. That seemingly galvanized big block supporters as it finally showed just increasing the base size works and solves the problem in about one week.
Another reason is that BitPay started asking merchants to download the segwit2x btc1 client, suggesting the Bitcoin Core chain may continue being divided, while Bitcoin Cash has a clear united vision and roadmap.
Third reason was the bull run acting as a propellant pushing the prices even further sending mining profitability to almost the same level as that of Bitcoin Core.
The Bitcoin Cash chain is soon to have its first protocol level difficulty adjustment after going through the two weeks period. That may make it more profitable than Bitcoin Core. BitClub is known to be a strong small block and segwit supporter. They have been mining Bitcoin Cash (BCC/BCH) for quite some time now.
What happens next remains to be seen. There could be trouble for the Bitcoin Core chain if their miners move to BTH because then it would be more difficult to find blocks.