Bitcoin Cash was once one of the most successful forks. Not to mention, the altcoin hit its all-time high of $1,550 in May last year.

The market crash dragged BCH from its all-time high to its current lows. Now, despite improving market conditions, the altcoin doesn’t seem to have the capacity to hit those highs again.

Bitcoin Cash Caught

On August 15, at the time of writing, the altcoin was trading at $135. After the market crash in June, it managed to recover more than 60% in July. But the price moved down and hasn’t gone up since.

While many altcoins have already made up for their losses in June, BCH is struggling to follow the path of recovery.

Bitcoin Cash Price Action | Source: TradingView – AMBCrypto

But it’s not just price action that points to a sluggish recovery, network stats point in the same direction.

The asset’s demise due to the rise of DeFi-supported blockchains, Layer 2 chains, and the native tokens of DeFi protocols is also a contributing factor to the lack of use cases for Bitcoin Cash.

On-chain, the number of transactions per day has fallen from its highs of nearly 361k to just 31k on August 15.

Bitcoin Cash Transaction Statistics | Source: Coinmetrics – AMBCrypto

The lack of investor interest and continued declines, coupled with the weak recovery, have resulted in lower network participation, despite the slight increase over the past two months.

There is a way to trigger a wave of recovery by bringing new investors on board. However, they would need a big ace to be lured in, BCH lacks that too.

The return on investment for the asset is close to -80%, which is lower than not only Bitcoin itself, but even lower than those of Cardano and XRP.

Bitcoin Cash ROI | Source: Coinmetrics – AMBCrypto

So it is a difficult task for Bitcoin Cash to recoup the 60% losses of two months ago. And expecting a 1,053.36% rise to its all-time high is absolutely insane.



This post 1.053% Bitcoin Cash rally could be proof of your risk tolerance

was published first on https://ambcrypto.com/1053-bitcoin-cash-rally-could-be-a-testament-of-your-risk-tolerance/

Author

Write A Comment