Bitcoin cash surged above $700 today, passing a notable milestone amidst a two-day rally during which the price of the cryptocurrency more than doubled.
Heading into weekend trading sessions, bitcoin cash has emerged as the third-largest cryptocurrency by network value, behind bitcoin and ethereum. And while it might still be too early to compare bitcoin cash to these more established networks (there remain unanswered questions about its particular economics), traders are proving it might have staying power.
Overall, the development is the latest in a narrative that began when bitcoin cash split off from the main bitcoin blockchain earlier this month because a group of miners and developers moved to adopt software with new network rules that were incompatible with bitcoin.
The result: bitcoin "forked" into two distinct blockchains, each with their own freely-traded digital assets. But while bitcoin surged past $4,000 to set new all-time highs, bitcoin cash stayed largely stagnant this week – trading in the $300 range. Yet, at press time, bitcoin cash was trading around $750 per coin.
So what's driving these jumps? And will these drivers continue to propel price movements, both up and down, in the future?