Bitcoin Cash, the barely five months old chain-split fork of bitcoin, now handles almost 50% of BTC’s transaction volumes.
Bitcoin processed 234,000 transactions yesterday, according to Bitinfocharts, while Bitcoin Cash processed 110,000 transactions within a 24 hour period.
There has been increased demand for Bitcoin Cash transactions recently, but the reason is unclear with some suggesting it is a mere spam attack.
But why anyone would pay around $45,000 (17 BCH) in fees just to uselessly spam is unclear as Bitcoin Cash is barely experiencing any backlog.
So it may be the case instead a new service provider has begun using the network, or maybe many of them have begun using BCH at around the same time.
Bitcoin Cash has seen increased adoption recently with many small merchants stating they now accept it for payments and some bitcoin focused projects have begun or are in the process of integrating Bitcoin Cash.
That includes Open Bazaar, an e-Bay like crypto only platform where you can buy numerous things, as well as the revived tippr bot which finds much use on Reddit and Twitter.
It also includes BitPay, which is integrating Bitcoin Cash as an option for their merchants, the only such alternative besides bitcoin.
The above chart indicates an inverse correlation between bitcoin and Bitcoin Cash transactions during the past few days.
If the data is indeed correct, then it may well be bitcoiners are opting in towards using Bitcoin Cash due to its far lower fees and far faster confirmation times.
That may especially be the case where merchant payments are concerned. With bitcoin at times having fees of $70 or more, even fairly high end goods, such as laptops, become expensive to buy, while cheaper goods, such as games, become prohibitively so.
Individuals, therefore, might be more and more using Bitcoin Cash instead of BTC for payments and commerce, thus increasing demand for BCH and so growing its network effects.
But it may be the case that what we are seeing could be just a brief spike, so more time is needed to establish a fuller trend.