The cryptocurrency market often experiences sudden surges in activity, and Bitcoin Cash (BCH) made headlines in mid-2023 with a dramatic rally that caught many investors off guard. After years of relative dormancy, BCH showed signs of strong revival—driven by network upgrades, rising on-chain activity, and increased institutional interest. This article explores the reasons behind Bitcoin Cash’s renewed momentum, its technological evolution, and what it means for the future of digital payments.
Recent Price Surge and Market Performance
June 2023 marked a turning point for Bitcoin Cash. What began as a modestly performing asset quickly transformed into one of the top gainers among major cryptocurrencies. According to CoinGecko, BCH surged from an opening price of $110 at the start of June to a yearly high of **$320 by month-end—an increase of nearly 200%** in just 30 days.
This rapid appreciation wasn’t isolated to price alone. The market cap of Bitcoin Cash briefly surpassed $6 billion**, while daily trading volume exploded from an average of $52 million to over $1 billion** in the final weeks of the month. Such a spike—more than a 20x increase—signaled growing investor confidence and heightened liquidity.
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On-Chain Activity Reaches New Heights
Behind every price movement lies fundamental activity—and Bitcoin Cash’s blockchain has never been busier.
Data from Tokenview shows that total transactions on the BCH network have exceeded 370 million, with active addresses surpassing 21.8 million. But more telling is the surge in mining metrics:
- Hashrate: Reached over 5.04 exahashes per second (EH/s) on June 30, 2023—the highest level in nearly two years.
- Mining Difficulty: Jumped above 450 gigahashes, reflecting increased competition among miners to secure the network.
A rising hashrate indicates stronger network security and growing miner participation. When more computational power protects a blockchain, it becomes more resistant to attacks—making it more attractive to long-term investors.
Additionally, transaction fees spiked dramatically in early July:
- On July 6, fees hit 3.9 BCH in a single day.
- Just six days later, on July 12, they rose further to 4.3 BCH—the highest levels in over a year.
These spikes suggest increased demand for block space, likely driven by new applications and token activity on the network.
Key Drivers Behind the Rally
Several interconnected factors contributed to Bitcoin Cash’s resurgence.
1. Institutional Listings: EDX Markets Boosts Legitimacy
One major catalyst was the listing of BCH on EDX Markets, a U.S.-based crypto exchange backed by traditional financial giants like Fidelity, Charles Schwab, and Citadel Securities. EDX launched with only four assets: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
This selective inclusion sent a powerful message: BCH is viewed as a credible, non-security digital asset—a crucial distinction amid ongoing regulatory scrutiny of cryptocurrencies. Unlike many altcoins facing potential classification as securities, BCH’s inclusion implies regulatory clarity and institutional acceptance.
Moreover, being grouped with BTC, ETH, and LTC gives BCH unprecedented exposure to mainstream investors who trust regulated platforms.
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2. Network Upgrade: Smart Contracts and CashTokens
In May 2023, Bitcoin Cash underwent a significant hard fork upgrade, introducing two groundbreaking features:
- CashTokens: A new protocol enabling token issuance directly on the BCH blockchain—similar to ERC-20 tokens on Ethereum.
- Smart Contract Support: Allows developers to build decentralized applications (dApps) natively on BCH.
This upgrade marked a pivotal shift. Previously seen merely as a peer-to-peer electronic cash system, Bitcoin Cash now competes with platforms like Ethereum in terms of functionality. Developers can now launch tokens, create NFTs, and deploy automated contracts—all without relying on layer-2 solutions.
Since the upgrade, transaction volume and developer activity have steadily increased, signaling growing ecosystem adoption.
3. Broader Market Sentiment: Bitcoin ETF Hype
The broader crypto market received a boost when BlackRock filed for a spot Bitcoin ETF in June 2023. While focused on BTC, this move ignited optimism across the entire space. Investors began rotating capital into established cryptocurrencies with strong fundamentals—including Bitcoin Cash.
The narrative of “digital gold” expanded to include “digital cash,” positioning BCH as a practical, scalable alternative for everyday transactions.
How Does Bitcoin Cash Work?
Bitcoin Cash originated as a fork of the original Bitcoin blockchain in August 2017, born out of a philosophical divide over scalability.
While both BTC and BCH use Proof-of-Work (PoW) consensus and share a maximum supply of 21 million coins, their design philosophies differ significantly.
Key Differences:
| Feature | Bitcoin (BTC) | Bitcoin Cash (BCH) |
|---|---|---|
| Block Size | 1 MB | Up to 32 MB |
| Transactions Per Second | ~7 | Up to 100 |
| Average Fee | $1–$5 | As low as $0.001 |
By increasing block size from 1MB to 8MB initially—and later to 32MB—BCH enables faster transaction processing and drastically lower fees. This makes it ideal for microtransactions and real-world payments.
Each Bitcoin holder received one BCH token at the time of the fork (1:1 ratio), ensuring fair distribution.
Historical Milestones
Understanding Bitcoin Cash’s journey helps contextualize its current momentum.
- August 2017: Bitcoin Cash forks from Bitcoin due to disagreements over block size limits.
- November 2018: A contentious hard fork splits BCH into two chains: Bitcoin Cash ABC and Bitcoin SV (BSV).
- May 2023: Another major upgrade introduces CashTokens and smart contract capabilities, transforming BCH into a programmable blockchain.
These events reflect an ongoing commitment to innovation and decentralization—core values that continue to attract developers and users alike.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin Cash just a copy of Bitcoin?
No. While it shares Bitcoin’s core architecture, Bitcoin Cash improves upon it with larger blocks, faster confirmations, lower fees, and now supports smart contracts and token creation via CashTokens.
Q: Can I use BCH for everyday purchases?
Yes. Thanks to near-instant settlements and negligible fees, many merchants accept BCH for goods and services worldwide. Its design aligns closely with Satoshi Nakamoto’s original vision of peer-to-peer electronic cash.
Q: Is Bitcoin Cash a good investment?
As with any cryptocurrency, investing in BCH carries risk. However, its recent upgrades, rising on-chain activity, and institutional recognition suggest growing utility beyond speculation.
Q: How is Bitcoin Cash different from Bitcoin SV?
After the 2018 fork, Bitcoin SV claimed to preserve the original Bitcoin protocol strictly, while Bitcoin Cash ABC (now simply BCH) embraced innovation—such as adaptive difficulty adjustments and modern scripting improvements.
Q: Does mining BCH require special equipment?
No. BCH uses SHA-256 hashing algorithm, so it can be mined using the same ASIC hardware as Bitcoin. However, higher profitability depends on electricity costs and network difficulty.
Q: Where can I store Bitcoin Cash securely?
You can store BCH in any wallet that supports it—hardware wallets like Ledger or Trezor, software wallets like Electron Cash, or reputable non-custodial exchanges.
The Road Ahead
Bitcoin Cash has reemerged not just as a payment-focused coin but as a programmable blockchain with growing utility. With smart contracts, tokenization, rising hashrate, and institutional validation through EDX Markets, BCH is positioning itself as a serious contender in the next phase of crypto adoption.
While challenges remain—particularly around public perception and competition from other Layer-1 networks—the foundation is stronger than ever.
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Whether you're an investor, developer, or everyday user, Bitcoin Cash offers a compelling blend of speed, affordability, and innovation—proving that sometimes, the best ideas don’t just survive—they evolve.