The market capitalisation of Bitcoin Cash (BCH) has just been surpassed by that of Litecoin (LTC), according to CoinMarketCap data.
Before the fork, which occurred in mid-November, BCH’s market cap was over $9 billion and this placed it fourth among the cryptocurrencies with the highest market capitalisation, behind only BTC, XRP and ETH.
Now it has gone down to just over 1.4 billion, falling to eighth place, surpassed by XML, USDT, EOS and even LTC.
It is likely that the split of the chain with the birth of the new Bitcoin SV (BSV) cryptocurrency has somehow broken in two the market cap of BCH, with one portion in the hands of BCH, and another of similar magnitude linked to BSV.
In fact, the sum of the Bitcoin Cash market cap with that of Bitcoin SV (equal to about 1.3 billion dollars) would still be higher than that of XLM, the fourth cryptocurrency by market capitalisation. This suggests that if the fork had not created a second cryptocurrency BCH would have maintained the fourth place.
It should also be added that in the days immediately following the fork, Bitcoin Cash had maintained the fourth position and Bitcoin SV had also surpassed BCH for a very short period of time. However, from November 20th, a decline had been triggered that made both lose many positions.
In those days the situation was still unclear, but it started to be evident that the new cryptocurrency born during the fork (BSV) was destined to survive, and that Bitcoin Cash ABC was only the heir of BCH’s name and symbol.
However, even the cryptocurrencies that in recent weeks have surpassed BCH for market capitalisation have experienced losses in value.
For example, Litecoin has gone from a market cap of almost 3 billion dollars in the days before the fork, to a current one of about 1 billion and a half: in other words, all major cryptocurrencies, except Tether (USDT), have lost market capitalisation in recent weeks, although Bitcoin Cash has lost much more than the others.
According to Federico Izzi, professional trader of CryptoLab and BigBit, from an image point of view, these events have been a real disaster for Bitcoin Cash, especially with regard to the promoters of the two factions that opposed each other during the fork.
The situation has been detrimental even from a fundamentals point of view, given that the two projects are only carrying out their own ideologies while experiencing huge record economic losses.
For Izzi, even the postponement of the Bitmain IPO could have been caused by this situation:
“No one among the subjects involved is coming out well from this situation and the market has clearly rejected what happened, unlike for example what happened during the previous fork of Bitcoin Cash in August 2017.
Even adding the prices of BCH and BSV the loss compared to the pre-fork values is 60%, and all this is benefiting the projects that seem more serious, especially Litecoin, which has similar objectives to those of Bitcoin Cash. This is further confirmation for Litecoin’s protocol, which does not want to wage war on Bitcoin like BCH and BSV are doing, but to establish itself as an alternative with lower commissions and greater ease of use.
On the other hand, already at the beginning of the year Charlie Lee, the founder of Litecoin, had predicted that by the end of the year LTC would surpass BCH for market capitalisation“.