Bitcoin Cash Surges Nearly 40% to Claim Title of Top Performing Layer-1 Asset This Year

Bitcoin Cash (BCH) has emerged as the best-performing Layer-1 asset this year, experiencing a robust increase of nearly 40%, surpassing all other major blockchain networks.

Key Takeaways

Bitcoin Cash (BCH) has gained nearly 40%, making it the leading Layer-1 asset of 2023.
It outperformed other cryptocurrencies like BNB, Hyperliquid (HYPE), Tron, and XRP, which only saw modest gains.
While many other Layer-1 platforms such as Ethereum, Solana, and Cardano have suffered significant losses this year, BCH stands out for its performance.
This growth is attributed to favorable supply dynamics and increasing demand, with no sell-side pressure from token unlocks or venture capital overhangs.
Bitcoin (BTC) might experience a temporary dip to $87,000 before bouncing back to potentially reach $100,000.
Technical indicators suggest that Bitcoin remains in a bullish cycle, despite a recent plateau in prices.

Bitcoin Cash gains nearly 40% to become ‘best performing’ L1 of the year

Bitcoin Cash: A Strong Performer

Recent analysis from Crypto Koryo indicates that Bitcoin Cash has outstripped competitors like BNB, Hyperliquid (HYPE), Tron, and XRP, which have shown only limited growth. Many major Layer-1 networks such as Ethereum, Solana, Avalanche, Cardano, and Polkadot are significantly down this year, with several experiencing losses of over 50%.

Koryo pointed out that BCH's impressive performance is notable, especially considering that it does not even maintain an official account on platform X. The analyst believes that its success arises from a favorable blend of supply dynamics and new demand entrants.

Looking at the supply aspect, Binance Coin (BCH) faces no token unlocks, has no foundation treasury, and no venture-capital burden, which minimizes sell-side pressure. "The entire supply is circulating. No unlocks. No foundation, [no] VCs dumping," Koryo stated.

BCH becomes best performing L1 of the year. Source: Crypto Koryo

Bitcoin's Potential Short-Term Pullback

In another segment, trader Michaël van de Poppe has suggested that Bitcoin may soon experience a slight dip before continuing its ascent towards the $100,000 mark. In a recent post on platform X, van de Poppe outlined a scenario where BTC could decrease to around $87,000 as it prepares for next week's Federal Reserve meeting, which may trigger a movement back to recent lows, setting the foundation for a strong recovery.

Van de Poppe believes that the uptrend could resume once Bitcoin stabilizes above the crucial $92,000 level, potentially facilitating a hike towards $100,000 within one to two weeks. He links this optimistic view to a supportive macroeconomic environment, characterized by reduced quantitative tightening, upcoming interest rate cuts, and an increase in the money supply.

However, he did point out two crucial points that could refute this bullish outlook; if BTC drops below $86,000, it might fall to $80,000, or if it fails to break and maintain a position above $92,000.

Source: Michaël van de Poppe

Signals of a Continued Bull Run for Bitcoin

As previously reported by Cointelegraph, technical analyst TXMC has observed that Bitcoin's "liveliness" indicator— a long-term measure of on-chain coin spending versus holding—is currently rising. This pattern is often correlated with bull market phases.

The analyst noted that this increase in liveliness occurs despite prices remaining relatively stable, indicating a strengthening underlying demand for Bitcoin than what current price trends suggest. The liveliness metric tends to increase when older coins begin to circulate, while it decreases when long-term holders are accumulating more coins.

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