As the Bitcoin offshoot network experiences a revival of activity and value, open interest in futures tracking Bitcoin Cash (BCH) tokens has increased to levels not seen since May 2021.
According to data, BCH prices have doubled in the past week, making it one of the best-performing tokens with a market capitalization above US$1 billion. During this time, Bitcoin (BTC) and Ether (ETH) increased by 13% and 8%, respectively.
According to data, the number of unsettled futures contracts, or BCH open interest, increased from US$75 million the week before to over US$400 million on Monday. The cryptocurrency exchange Binance sparked the most interest in trading, with traders opening long or short positions worth US$240 million in BCH.
Rising available revenue implies that new cash is streaming into the market or existing members are expanding their distribution. The measurement can determine market feeling and the strength behind cost patterns.
A network upgrade and an influential exchange listing have likely sparked the sudden interest in BCH trading.
In May, the Bitcoin Cash network underwent a hard fork that increased the network's privacy and security and revealed plans for "CashTokens," a scaling system enabling developers to create decentralized applications directly on the Bitcoin Cash blockchain.
Smaller transaction sizes and smart contract functionality, which will enable Bitcoin Cash-based applications to provide Bitcoin Cash users with opportunities for recurring payments, derivatives trading, and crowdfunding, among other uses, were two additional enhancements.
BCH has also logically profited from the send-off of EDX Markets, as indicated by crypto research firm Santiment.
The new exchange, which opened trading on Tuesday and supports BCH in addition to Bitcoin (BTC), Ether (ETH), and Litecoin (LTC), is backed by traditional financial institutions like Citadel Securities, Fidelity Digital Assets, and Charles Schwab.
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