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 Cash, Stellar Suffer Network Issues; Binance Returns; TD Ameritrade, eBay, Quash Crypto Rumors

Over the past day, the crypto space saw two well-known blockchains - Bitcoin Cash (BCH) and Stellar (XLM) - suffer network issues. Also, a week after its worst-ever hack, Binance resumed full functionality of its crypto exchange. We also heard TD Ameritrade and eBay each come out and deny what were fast-spreading rumors they were on the verge of entering the crypto industry.

Bitcoin (BTC) has hovered around the $8,000 mark for much of the past 24-hour period. At the time of writing, BTC is trading at $8024.3 (+1.23%). As for ether (ETH), it spiked to $262.2 (+12.4%), its highest price since September 5, 2018. Additionally, the MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 3,698.1, a 4.9% rise over the past 24 hours.

ETHUSD Ether CryptoCompare Ethereum

Bitcoin Cash, Stellar, Suffer Network Issues

After going through a planned system-wide update, the Bitcoin Cash network stopped processing transactions for various blocks, over what some claimed to be an issue with the Bitcoin ABC client. Eventually, developers released new code to fix a bug that had – until it was patched – resulted in a string of empty transaction blocks. The Bitcoin Cash blockchain has since resumed processing transactions normally.

Similarly, as broken by Tim Swanson via Twitter, the Stellar network also went down yesterday. The downtime lasted “for about 2 hours,” according to the Post Oak Labs director of research, who went on to note that “only those who run validators [would have] noticed it.” In explaining what happened, Swanson tweeted “that a critical mass of nodes went down causing a cascading failure and so the entire network went down but because it isn’t frequently used, few notices.”

Bolstered Binance Resumes Services

Binance announced it was back online after completing a security upgrade prompted by a data breach suffered early last week, which resulted in hackers stealing the equivalent of over $40 million in bitcoin.

Following the upgrade, Binance announced trading would recommence at 13:00 UTC, along with the ability for users to cancel open orders and process deposits. Despite the top-tier crypto exchange stating, “the withdrawal function will be available shortly after trading resumes,” this has yet to occur – at least entirely. According to the below tweet from Binance’s co-founder and chief executive Changpeng ‘CZ’ Zhao, withdrawals have been opened for most, but not all, tokens.

 

 

TD Ameritrade, eBay, Deny Rumours of Crypto Expansion

U.S.-based online brokerage firm TD Ameritrade and e-commerce giant eBay have quashed fast-spreading rumors they each were set to expand into the crypto space. With regards to eBay, a spokesperson told Bloomberg “cryptocurrency is not accepted as a form of payment on the eBay platform, nor is it part of [eBay’s] payments strategy.”

As for TD Ameritrade, the company’s head of digital assets told the news site “currently [TD Ameritrade is] not,” testing bitcoin and litecoin spot trading on its brokerage; referencing a (false) tweet on April 23 by Litecoin creator Charlie Lee.

The pair of now-debunked speculative stories coincided with the significant price run-up that took place in the cryptocurrency market earlier this week. News of eBay’s and TD Ameritrade’s expansions were widely thought to have contributed, at least in part, to the strong upward price movement.