SegWit More Widely Adopted Than Bitcoin Cash, BitMex Research Shows

Francisco Memoria
  • Researchers found that SegWit transaction volume has surpassed that of Bitcoin Cash by the end of October
  • Bitcion Cash's transaction volume spiked after it launched, it failed to keep up with SegWit's steady growth

Research conducted by the investment arm of cryptocurrency exchange BitMex found that while the transaction volumes of Bitcoin Cash (BCH) and  SegWit (Segregated Witness) are “reasonably similar,” Bitcoin Cash is seemingly lagging behind SegWit in the adoption race.

BitMex’s researchers found that SegWit has 20.1 percent more cumulative transaction volume than Bitcoin Cash. The number may be bolstered by SegWit supporters, the company notes, as they could claim Bitcoin Cash had a one-month head start. Adjusting for it, SegWit has 31.5 percent more cumulative transaction volume than BCH.

According to data it collected, Bitcoin Cash saw a significant spike in transaction volumes right after it was launched back in August 2017, while SegWit transaction started growing gradually, but ended up surpassing Bitcoin Cash.

This, researchers noted, may be “related to the investment flows and excitement of the new Bitcoin Cash coin, which may have driven short term adoption.” The turning point was October 31, 2017 – three months after Bitcoin Cash was launched.

Since then, SegWit has managed to stay ahead. Granted, the researchers point out the figures could easily be manipulated. BitMex’s piece reads:

“Although the data suggests that SegWit transaction have been adopted slightly faster than Bitcoin Cash, resulting in more transaction volume, Bitcoin Cash advocates could argue that the Bitcoin Cash token is more about a philosophy of larger capacity in the long term, rather than the speed of the actual increase in transaction volume in the short term. Therefore Bitcoin Cash supporters can still claim that Bitcoin Cash will eventually have more transaction volume than Bitcoin, once adoption of the coin increases.”

BitMex Research

BitMex Research further pointed out that SegWit adoption has been steadily growing since August 2017 and is “perhaps increasing in steps as large corporate entities switch to SegWit.” Last month, popular cryptocurrency exchanges like Coinbase and Bitfinex adopted the technology, improving the network’s efficiency.

Researchers further note that SegWit has begun to meaningfully impact bitcoin’s network, as it is “potentially reducing fees and benefiting even users who choose not to upgrade to the new transaction format.” Not only that, but SegWit also allows for second-layer technologies, such as the Lightning Network, which recently became a reality.

BitMex’s report shows that, since bitcoin Cash was launched, 6.1 million SegWit transactions occurred, against 4.88 million Bitcoin Cash transactions.  Nevertheless, it concludes that adoption of both SegWit and Bitcoin Cash has been “reasonably slow.”

Bitcoin Whales Accumulated Over $106 Million in BTC After Price Drop, Data Shows

Francisco Memoria

Bitcoin whales have accumulated over 12,000 BTC, or over $106 million worth of the cryptocurrency, since its price dropped below $9,500 on May 20, according to data from crypto analytics platform Santiment.

According to Santiment addresses with over 100 bitcoin in them – considered BTC whales because of their significant holdings – have been buying the dip over the last few days. Throughout the year, they’ve shown a “propensity to accumulate into dips and offload their bags slightly before short-term tops occur.”

Cryptocurrency market participants observe the movements of whales because their significant holdings could easily influence the market’s directions. If most bitcoin whales start accumulating a short-term rise is to be expected. On the other hand, if whales move their funds to exchanges a price drop is to be expected.

Back in March, Santiment found that the top 100 holders of Ethereum, the second-largest cryptocurrency by market capitalization, were accumulating amid an ongoing consolidation, which according to the firm showed those who have a larger stake in ETH were starting to have a “collective sentiment of the token being undervalued.”

Bitcoin whales were also accumulating funds ahead of the cryptocurrency’s halving event, which according to some signalled a sell-off was expected after the event. CryptoCompare data shows the price of bitcoin did not drop immediately after the halving. It traded over the $9,000 for days after the event, but has since dropped below that mark.

Featured image via Pixabay.