More Than 43.5% of the Bitcoin Cash Supply Hasn't Moved in Over two Years
Glancing at the current dormant supply of Bitcoin Cash, there is an interesting tale to be discovered. More and more funds obtained over the past two years are being kept in wallets without moving money around. If this trend continues, the overall supply on trading platforms is bound to dwindle even further.
Keeping BCH Funds off Exchanges
Statistics provided by Glassnode confirm that there are quite a few BCH holders out there today. The most recent figures indicate that 43.7% of the entire Bitcoin Cash supply has not moved in two years or more.
Considering how there are over 18.454 million BCH in circulation, this means that over 8 million BCH has not moved on the network in the past two years.
While that still leaves ample funds to be traded on exchanges, it confirms that some people are happy to sit on their Bitcoin Cash supply. Although the prices have remained around the $250 level for some time now, many still hold out hope for higher values.
Achieving a price increase in the future is not impossible. Returning to the price levels of early 2018 may be a different matter altogether, however.
BCH Transaction Count Drops
With more of the BCH supply remaining dormant, one would expect there to be a dip in overall network transactions. That dip is certainly apparent, although things are not looking bad by any means.
On July 5th, there were 13,481 BCH transactions on the network. It is a sharp decrease from the 62,241 transactions in late March 2020.
Looking back in history, the current number of transactions is on par with figures recorded in February of 2019.
During that time, Bitcoin Cash was worth $100 per coin. As such, the transaction volume doesn't appear to be linked to the price all that much. It does make one wonder when the network will note a hefty increase in activity again.
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