Bitcoin Cash Outperforms Layer 1 Peers Amid Market Decline
Bitcoin Cash (BCH) has emerged as a standout performer among Layer 1 cryptocurrencies this year, according to CryptoKoryo. While most Layer 1 tokens, including Ethereum (ETH), Bitcoin (BTC), Solana (SOL), and Avalanche (AVAX), have seen declines ranging from 10% to 80%, BCH, along with BNB, HYPE, and TRX, has posted gains.
BCH's resilience is attributed to its unique supply dynamics and demand factors. With its entire supply already in circulation, BCH faces no token unlocks or mandatory selling pressure, unlike many newer Layer 1 projects burdened by vesting schedules and inflationary incentives. Additionally, the potential approval of a BCH ETF has sparked interest from traditional finance institutions, further boosting demand. BCH's liquidity and low volatility make it an attractive option for large funds seeking exposure without high risk.