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Bitcoin Cash has quietly become one of the best-performing layer-1 networks in the crypto sector.
One of the more notable reports I read this weekend suggested that Bitcoin Cash (BCH 1.55%) is among the best-performing layer-1 networks in the entire sector this year.
Bitcoin Cash
Today’s Change
(-1.55%) $-9.19
Current Price
$582.72
Key Data Points
Market Cap
$12B
Day’s Range
$576.61 – $604.19
52wk Range
$251.09 – $650.02
Volume
306M
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
With hundreds of such layer-1 networks available, and Bitcoin Cash now occupying 11th position in terms of market capitalization in this sector overall, this token has made an impressive year-to-date move of around 35%. Any investor should rightly be happy with that return.
Since 4 p.m. on Friday, Bitcoin Cash has surged 3.1% (as of 5 p.m. on Monday), inching its way toward a new 52-week high. Let’s explore whether a new high is in store for this cryptocurrency and what investors should make of this potential move.
What’s driving Bitcoin Cash higher?
Source: Getty Images.
Identifying specific catalysts for certain tokens can be a challenging task. In this case, I do think there are a range of bullish factors at play that are stoking impressive investor demand for Bitcoin Cash.
First and foremost, I’ve seen several reputable sources discuss Bitcoin Cash’s underlying tokenomics as key to its investment thesis. Investors generally don’t want to own highly inflationary tokens with future unlocks ahead, either to pay out early investors or compensate developers. Because Bitcoin Cash has a fully circulated supply, meaning no new tokens will be issued, this may prevent a rally from being derailed prematurely. That’s key, as it’s a surprisingly rare feature in this sector.
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On the demand side of the equation, there’s a lot to like about the ecosystem Bitcoin Cash has brought forward, and the growth this project has seen in true peer-to-peer transactions (the key problem many early adoptions initially thought crypto was intended to solve). This is a highly utilitarian token with real-world use cases that I think provide meaningful value.
Indeed, many market participants clearly share the same sentiment about Bitcoin Cash right now, as evidenced by this token’s impressive year-to-date performance.
Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.