Chainalysis Research: Over Half of Bitcoin Cash Supply is in 67 BCH Wallets
Bitcoin Cash Celebrated First Anniversary With Very Few Wallets In Attendance
Bitcoin Cash has not been around for very long. With just a year under its belt, the coin started strong originally. The cryptocurrency had pulled away from the “core” blockchain, and was supported by Roger Ver in its infancy, despite his loyalty to Bitcoin. In fact, there were many experts that believed in Bitcoin Cash’s role as the “true Bitcoin.”
In Ver’s interview with CNBC only a few months ago, he even said,
“That’s what actually gives [bitcoin cash] its underlying value, that you can use it in commerce to pay for things. Whereas, a lot of these other tokens out there just kind of turn into speculative assets that don’t actually have any utility.”
It does not seem like these remarks have been strong enough to keep Bitcoin Cash healthily afloat within this market. Kim Grauer, who is a senior economist with Chainalysis decided to participate in an interview with Bloomberg to discuss the first year of this platform’s life. She started the discussion with the availability of BCH in multiple use cases in commerce, saying
“Bitcoin Cash payments slumped to $3.7 million in May from a high of $10.5 million in March. Bitcoin payments totaled $60 million in May, down from a peak of $412 million in September.”
Unfortunately, Bitcoin Cash has not stayed as strong as many investors would have liked. Commercial use is way down from a year ago, and it was one of the big sufferers during the market drop, losing 85% of the market cap and many token holders. Grauer turned her attention then to the lack of adoption for Bitcoin Cash. Right now, there are 67 digital wallets that collectively hold 56% of the total supply. She expanded on this issue, and said
“Of those, two wallets hold between 10,000 and 100,000 Bitcoin Cash. And chances are, the wealthiest holders are the ones sending a lot of the traffic to merchant services.”
Though Bitcoin Cash once held a substantial dominance in the market, it still has been the victim of price drops. It dropped down to 32% dominance at one point, which was the all-time low of its lifetime, but has since boosted back up to 53% right now.
In relation to the other sufferers in the market, Bitcoin Cash has taken quite a larger hit, percentage-wise. Bitcoin had lost a few thousand dollars in their price, but Bitcoin Cash was taken down from over $3,700, plummeting down to $534, which is a loss of 86%. The average of the entire market was only a 68% loss, which is significantly less difficult to recover from.
As if this was not enough to cause a rift in Bitcoin Cash’s rise, a developer with “Bitcoin Core” found a consensus vulnerability in their code. Though no damage or theft had occurred yet, not finding this weak point could have irreparably damaged the BCH blockchain. Hopefully, as Bitcoin Cash heals itself with the help of its followers, they will find themselves in an upward swing, rather than a continued decline.