633 c3b912f7a3ac39a12f30c1ce0921d. Jpeg with the development of the BCH is getting better and better, more and more analysts start to focus on it and analyze it. Peter Ryan, CEO and founder of Ryan Research, recently analyzed BCH and concluded that “Bitcoin Cash has become the second most valuable blockchain.”

According to his report, Bitcoin Cash has set a new record and it is now the second most valuable blockchain in the entire cryptocurrency industry. This conclusion has nothing to do with speculative market capitalization and trading, and everything to do with blockchain. In essence, the on-chain activity of blockchain shows the trust and value of the blockchain, and the huge growth of transactions on the BCH chain also makes BCH stand out in terms of value.

Explore the online activity of Bitcoin Cash

Network activity involves all the operations that we can measure within the blockchain of a given cryptocurrency. Some cryptocurrencies are measured differently than others, but they typically have several metrics in common: active address, transaction frequency, and transaction volume.

Volume refers to the total value of transactions within the blockchain. Since most blockchains have public data, we can make an approximate evaluation of the year, month and day.

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Transactions also show how much trust users have in the chain. Anyone making a transaction in a network is entrusting money to the network in the hope of being able to transfer it to its destination unscathed. The greater the value of the currency that users trade on the network, the higher their trust in the network.

For example, imagine walking down the street with a $20 bill in your pocket. How would you feel? Do you think this is a very normal thing. What if you were carrying a transparent suitcase with $1 million in it? Do you get nervous and scared? The same applies to users on the blockchain. The more money a user transfers on the blockchain, the more they trust it.

Bitcoin Cash stands out

While Bitcoin Cash may now rank fifth in terms of market capitalization, its trading volume is currently second. Around mid-May, the numbers started to really take off, exceeding $2 billion a day. Other notable cryptocurrencies, such as ETH, LTC and XRP, are well below it.

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Source: Coinmetrics.io

Over the past six months, we have been able to compare Bitcoin Core (BTC) to Bitcoin Cash (BCH). At the beginning of the year, both currencies fell, but in April they showed positive growth, and since then we have observed that BCH has grown much faster than BTC.

In May, BCH transactions were up 185 per cent month-on-month, while BTC was up only 56 per cent. BCH’s trading volume in May was nearly a third of BTC’s, but in July it was only about a quarter.

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There have even been times when BCH has far outpaced BTC in volume growth, most notably on May 27 this year. The volume of BTC trading may be larger, but the growth of BCH is more drastic.

Why the increase?

Usage of the Bitcoin cash blockchain appears to be increasing, but it’s hard to pin down cause and effect. One explanation is that tokens on BCH have started to heat up, and their growth is reflected in the volume curve.

SLP tokens allow porting unique units with custom behavior to the BCH blockchain. Each SLP token transaction is in a regular BCH transaction.

The peak of SLP activity occurred in May, which corresponded to a sudden increase in transaction volume during the same period. However, the activity only shows participation, and the total value of transactions is very small in terms of volume.

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Not only is token activity contributing to the increase in transaction volume, but a general rebound in the crypto market could also contribute to this growth. With renewed investor interest in cryptocurrencies, some will see BCH as a worthwhile investment and put a lot of money into it.

Speculative trading volume figures confirm this. BCH went from $500 million in March to $1 billion in April to $4 billion in May. If investors buy BCH in large quantities, it is likely that on-chain trading volumes will increase as well.

Since cryptocurrency investors typically react to price movements and market cap indicators, there may be better ways to assess a project’s future. If users start prioritizing utility over simple guesswork, blockchains like BCH will explode in new ways than ever before.

This article is reprinted from wechat official account BitcoinCash