The price of the digital currency Bitcoin Cash maintained its upward trajectory and surpassed the mark of $ 700 the 18 of August.
As for the weekend's trading sessions, the cryptonion recorded more than double its price increase and emerged as the third largest digital currency in terms of net worth.
The positive developments seen in the performance of Bitcoin Cash are part of the brief history of the digital currency that began when it separated from the main Bitcoin Blockchain in early August.
Bitcoin's division was made when a group of miners and developers adopted software with new network rules that were not compatible with cryptonnet.
Although Bitcoin continued to experience exceptional performance following the division's record highs of more than $ 4,000, Bitcoin Cash remained largely stagnant in its first few weeks of existence.
However, the latter experienced a sudden increase during trading in mid-August to reach around $ 750 per token.
Possible reasons for price increase
There are several possible factors behind the sudden increase in the price of Bitcoin Cash, but it is still uncertain whether these drivers will continue to propel the value of the digital currency upwards in the future.
Among the main drivers behind Bitcoin Cash's upward trajectory are:
Mining Mechanics - Reducing the difficulty of the Bitcoin Cash network is attracting a growing number of miners, as their profits will be higher due to the expected increase in the number of tokens they will produce. During the split with Bitcoin, Bitcoin Cash's mining has been very hard due to the disorderly mechanics of the division. With the recent increase in the price of the digital currency and the expected reduction of the difficulty in mining, it is expected that the number of Bitcoin miners will increase further.
New swap volume - There are indications that a growing number of digital currencies are adopting Bitcoin Cash on their platforms. A timely case is trading about $ 1.2 billion of digital currency in three South Korean exchanges only in mid-August, namely Bithumb, Coinone and Korbit.
Faster Processing - CNBC reports that the faster processing of Bitcoin Cash is what probably caused 40 percent of investors to increase their bet on it.