- Bitcoin Cash ranks higher in decentralization than Litecoin and Ethereum Classic.
- BCH whales have been reaccumulating during the recent crash.
Bitcoin Cash [BCH] has been overshadowed by its more popular counterparts for the major part. Nevertheless, it has managed to retain a sizable following, and it is perhaps the most underrated cryptocurrency as far as decentralization is concerned.
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Bitcoin Cash happens to be doing quite well on the decentralization front. A higher hash rate is often considered a good measure of decentralization for PoW networks, and it also translates to higher network security.
BCH’s hash rate has been above the 1 EH/s level for the last three months. Its hash rate at press time was as high as 1.78 EH/S.
Source: CoinWarz
For context, 1 EH/S is a million times more than 1 TH/S. Litecoin’s latest hash rate figure came in at 716.06 TH/S while ETC’s hash rate was 107.13 TH/s at press time.
This means that Bitcoin Cash outperformed Litecoin and Ethereum Classic in terms of hash rate. Despite these findings, Bitcoin Cash’s hash rate is lower than Bitcoin’s 355.37 EH/S hash rate, hence BTC is still king in that regard.
Even so, Bitcoin Cash does have a higher block size than BTC, and this facilitates a higher TPS. This is why, for some, BCH is a more preferable option as a peer-to-peer payment than Bitcoin.
Bitcoin Cash price action
BCH is still heavily undervalued compared to BTC yet both have a similar circulation and maximum supply.
Bitcoin Cash traded at $114.16 at press time, which represented a 25% discount from February highs. Nevertheless, it still showed a bit of an upside from its current weekly low of $105.05.
Source: TradingView
BCH’s price action reflects movements in the overall crypto market. But is Bitcoin Cash more likely to achieve a sizable bounce back? So far the recent pivot was underpinned by significant whale accumulation.
How much are 1,10,100 BCHs worth today?
Whales in the highest address category holding over 1 million BCH have been adding to their balances. The same applies to addresses within the 1,000 to 100,000 BCH category. These addresses increased their holdings since 9 March, hence buying the dip.
Source: Santiment
Despite the accumulation, addresses within the 100,000 to 1 million BCH category have been contributing to some selling pressure.
This may explain the limited upside. Bitcoin Cash’s dormant circulation metric indicates that a significant amount of the cryptocurrency exchanged hands during the recent selloff.
Source: Santiment
On the other hand, the transaction volume indicated a surge in activity on 9 March. This observation confirmed the influx of buying activity observed when the price bottomed out.
