On Tuesday, April 24, Bitcoin has convincingly crossed over the $9200 mark while hitting its 30-day high, according to the data on CoinMarketCap. While the same time the overall market valuation has smashed through $400 billion and is precisely at $420 billion at the press time. In addition to Bitcoin, other altcoins too are continuously pushing the market forward over the last week.
Earlier this month, the crypto market was under heavy selling pressure ahead of the U.S. tax deadline last week. However, one of the biggest show-stealer of this crypto market rally is Bitcoin Cash which has been in the steep upward momentum over the last one week. Sice Friday, Bitcoin Cash has gained more than 30% and is currently trading at $1537.43 which is more than 10.5% up in the last 24 hours. The overall market cap of Bitcoin Cash is now $26 billion.
Another cryptocurrency that is showing a significant move with 17.8% gains in the last 24-hours is EOS. EOS is currently trading at $13.63 with a market cap of over 411 billion and trading volumes more than $1 billion.
Bitcoin Cash is scheduled for a hard-fork next month on the 15th of May. The hard fork update will be increasing the block size of Bitcoin Cash on the network by four times. this means that from the existing 8MB block size, the new block size for Bitcoin Cahs will be 32MB. This means that it will be able to process four times more number of transactions than it does today.
One of the major things that is driving the craze for Bitcoin Cash among investors and traders is that the network upgrade will add and reactivate several operation codes and there are also talks that simplified smart contracts will also be added to the BCH blockchain.
However, in one of the latest revelations by Bloomberg, the latest price rise of Bitcoin Cash is because Antpool – one of the biggest mining pools is accused of “burning” some quantity of BCH tokens it has received through mining. This reduction in the supply is causing to drive the prices higher.
Kyle Samani, managing partner at the Austin, Texas-based crypto hedge fund Multicoin Capital says that Antpool has been burning $12 worth Bitcoin Cash a day. Kyle said: “This was purely a PR game so they could say ‘reducing supply.”’
On April 20, Antpool announced on its Facebook account announced that it will be voluntarily burning 12 percent of total coin reserves it has. This mining group is also sending a portion of its fees to “a black hole address.” Today. one of the advantages that Bitcoin Cash enjoys over its arch-rival Bitcoin is low transaction costs and faster transaction times.
However, the Bitcoin developers have shown speedy improvement in the development of Lightning Network which is expected to majorly solve the scalability issues of Bitcoin, and could arrive by this year-end. This will certainly pose a big threat to Bitcoin Cash.
Lucas Nuzzi, a senior analyst at Digital Asset Research said: “Now, projects like Bitcoin Cash are struggling to remain relevant, which is hard when very few users are using the network. Miners have to liquidate their holdings regularly to pay for their expenses. The move from Antpool is intended to slow down further price depreciation, by attempting to increase the perception of scarcity. Whether the move will be successful remains to be seen.”