Bitcoin wasn’t the only cryptocurrency to experience recent price volatility, as Dash hit a record high of $521 USD on Nov. 12.
After the SegWit2x cancellation Bitcoin Cash ballooned to close to $2,500 USD on Nov. 12. Then the air escaped and its value dropped 60 per cent in one day. Bitcoin shed more than $1,000 that day before recovering to top $6,600 USD Nov. 13.
Last week, Dash announced a software upgrade that increases the transaction size for each block from 1Mb to 2Mb, ironically the same size Bitcoin developers just rejected for hard fork SegWit2x. Dash transaction fees are less than one penny, while Bitcoin’s are more than $5.00 USD. Dash also confirms transactions in less than two seconds.
“The market is reacting extremely positively to our practical path to scaling digital currency,” Dash CoreCEO Ryan Taylor said. “Dash’s pioneering architecture, incentive structure, and technology roadmap ensures we can continue growing our capacity to meet the needs of the exponential growth of our industry. It is clear that the market is valuing this capability, because without the added capacity that was expected from Segwit2x, that anticipated transaction demand has to land somewhere.”
Industry leaders see some interesting trends developing of late.
Perry Woodin, CEO Node40
The wild price swings we are seeing in BTC, BCH and DASH seem to be driven by investors who are finally starting to evaluate Bitcoin’s utility. Bitcoin has strayed from the original vision in Satoshi’s whitepaper. In fact, it has moved so far from the anonymous inventor’s intent that investors are taking a serious look at the other currencies that can prove their utility as a digital cash payment system.
Graeme Moore, Polymath executive
We will likely experience heavy volatility in cryptocurrencies in the near term. With Segwit2x failing, the pump of Bitcoin Cash and coming Bitcoin Cash hard fork, coupled with a large amount of unconfirmed Bitcoin transactions stuck in the “mempool” it should be a very exciting week in crypto.
CoinDesk Director of Research, Nolan Bauerle
Much of the volatility lies in the politics around the Bitcoin protocol. When the 2x fork was canceled, so called ‘big blockers’ moved to Bitcoin Cash as a philosophical home. So, we have been witness to a kind of divorce between two groups and subsequent sell offs and migration of network activity. This was compounded by miners who chased easier and more profitable mining block rewards in Bitcoin Cash at the expense of Bitcoin over the weekend.