Fresh data from CoinMetrics show that approximately one-third of the total circulating Bitcoin Cash supply remains static. It is unclear, albeit interesting, why the holders are not touching such a large amount of Bitcoin Cash.
One-third of Bitcoin Cash has never been moved
This news comes from a recent CoinMetrics report. The report examines the circulating supply of both Bitcoin as well as Bitcoin Cash. Although both cryptocurrencies have a significant amount of coins that are static, this amount is far greater for Bitcoin Cash.
In fact, the circulating supply of Bitcoin Cash is officially around 18.4 million coins. However, CoinMetrics suggests that the “true” circulating supply could be as low as 12.4 million. This is because a whopping 6 million (roughly a third of the total circulating Bitcoin Cash supply) has never been touched.
To clarify, these coins have received no input, circulation or other type of transferral since the crypto began in 2017. The Bitcoin fork that gave rise to Bitcoin Cash took place on August 1st, 2017. As such, this means that 6 million Bitcoin Cash coins have remained untouched for over two and a half year.
Bitcoin’s static supply is close to ten percent
For reference, the total circulating supply of Bitcoin has only seen 12.5% remain static over the past five years. Nevertheless, one should note that CoinMetrics data does conflict with data from Unchained Capital’s “HODL Waves” measure.
This static supply is essentially the difference between the “free float supply” and the total current supply. The following chart shows the remarkable discrepancy in Bitcoin Cash’s supply.
It is unclear why such a large amount of Bitcoin Cash remains static. One possible explanation is that this static supply is simply inaccessible. Although it is possible that some of it is inaccessible or forgotten, this does not seem like the most probable explanation.
Are Bitcoin Cash whales holding these 6 million Bitcoin Cash coins?
The other major explanation would be that Long-term investors hold this amount of Bitcoin Cash. Bitcoin Cash “whales” who do not intend to move their holdings in the near term could, therefore, account for roughly a third of the available Bitcoin Cash supply.
This seems likely given that the small upticks visible in the above chart from CoinMetrics indicate such increases occur. Moreover, these could be the result of large-scale Bitcoin Cash holders activating wallets with a large amount of coins.
Although it is not certain that this discrepancy is the result of Bitcoin Cash whales, it is nonetheless interesting. It seems likely that investors who do not move their funds are holding crypto long-term – a decidedly bullish indicator.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.