How Does On-Chain Data Analysis Reveal Bitcoin Cash's Market Position in 2025?

Active addresses surge 35% in 2025, signaling growing BCH adoption

Bitcoin Cash has demonstrated remarkable network growth throughout 2025, with on-chain metrics revealing a substantial 35% increase in active addresses. This significant uptick serves as a powerful indicator of BCH's expanding user base and growing market penetration. The surge coincides with notable price movements, as BCH tested the critical $570 resistance level amid a substantial 45.8% volume increase during Q3 2025.

Market dynamics behind this adoption growth are particularly evident in derivatives trading data:

The whale-driven accumulation pattern is further substantiated by GitHub activity showing a 33% increase in repositories related to BCH protocol smart contract enhancements. Technical improvements have delivered tangible benefits, with developers reporting up to 30% faster wallet synchronization times and 40% increases in transactional throughput during peak network loads.

Despite these positive indicators, BCH faces challenges with price resistance at higher levels, having tested but failed to maintain positions above $600 in recent trading sessions. The continued growth in active addresses nonetheless positions BCH for potential breakout scenarios as network fundamentals strengthen.

Transaction volume reaches $10 billion daily, narrowing gap with BTC

In a significant milestone for Bitcoin Cash, daily transaction volume surpassed $10 billion in mid-2025, establishing BCH as a formidable competitor in the cryptocurrency payment space. This achievement coincides with BCH's market capitalization reaching the $10 billion mark, demonstrating strong ecosystem growth and increasing merchant adoption.

The gap between Bitcoin Cash and Bitcoin transaction volumes has narrowed considerably, as shown in comparative data:

BCH's larger block size provides a technical advantage for handling higher transaction throughput at lower costs, making it particularly attractive for everyday payments. While BTC maintains higher overall volume, BCH's efficiency for small transactions has driven significant volume growth throughout 2025.

Market analysts attribute this volume increase to several factors: merchant adoption acceleration, integration with payment processors, technical upgrades to the BCH network, and growing consumer preference for cryptocurrencies with lower transaction fees. The price performance has followed this trend, with BCH trading at approximately $550, reflecting a 50% year-over-year increase.

Gate users have increasingly utilized BCH for cross-border transactions and e-commerce payments, contributing to this remarkable volume milestone and positioning Bitcoin Cash as a practical solution for global payment needs.

Top 100 addresses control 39% of BCH supply, indicating increased centralization

An analysis of Bitcoin Cash (BCH) holdings reveals a concerning pattern of wealth concentration that has intensified over time. According to recent data from 2025, the top 100 addresses now control approximately 39% of the total BCH supply, signaling growing centralization within the network. This represents a significant increase from previous years, with current figures showing the top 10 addresses alone holding around 30% of all coins in circulation.

The distribution pattern becomes more apparent when comparing BCH with other major cryptocurrencies:

This concentration of wealth has implications for network governance and price volatility. With fewer than 100 entities controlling nearly 40% of the supply, major market movements could potentially be orchestrated by a small group of holders. The Gini coefficient for BCH has also increased, currently standing higher than that of Bitcoin, further indicating wealth inequality within the ecosystem. This centralization contrasts with the original ethos of cryptocurrencies as decentralized financial systems, raising questions about BCH's long-term resilience against market manipulation.

On-chain fees remain low at $0.001 per transaction, enhancing BCH's utility

Bitcoin Cash continues to maintain impressively low transaction costs on its blockchain network, with fees averaging just $0.001 per transaction. This cost efficiency represents a significant advantage when compared to other major cryptocurrencies in the market:

These minimal fees directly enhance BCH's utility for everyday commerce and micropayments. The low transaction cost structure makes Bitcoin Cash particularly well-suited for frequent, small-value transfers that would otherwise be economically unfeasible on networks with higher fees.

The technical foundation for these low fees lies in Bitcoin Cash's larger block size, which allows for more transactions to be processed in each block. This increased capacity creates less competition for block space, thereby keeping fees consistently low even during periods of higher network activity.

Evidence of this enhanced utility can be seen in merchant adoption patterns, where businesses accepting BCH can offer customers the ability to make purchases of any size without worrying about transaction costs eroding value. The $0.001 fee structure represents just 0.1% of a $1 transaction, compared to nearly 200% for networks charging $1.90 per transfer—a dramatic difference that transforms BCH into a viable digital cash system rather than merely a store of value.

FAQ

Does BCH have a future?

Yes, BCH has a promising future. Its scalability, smart contract capabilities, and focus on privacy and utility position it well for long-term adoption and relevance in the crypto market.

What coin is BCH?

BCH is Bitcoin Cash, a cryptocurrency forked from Bitcoin in 2017. It operates on its own blockchain, aiming for faster and cheaper transactions than Bitcoin.

Can BCH reach $10,000?

Yes, BCH has the potential to reach $10,000. Its focus on fast, low-cost transactions aligns with crypto's original purpose, making it a strong contender for significant price growth in the future.

Which is better, BTC or BCH?

Both have merits. BTC is more established, while BCH offers faster transactions due to larger block size. Choice depends on your priorities: stability or speed.