Digital asset exchanges are gateways for regular individuals and corporations to participate in the cryptocurrency ecosystem. These exchanges serve as platforms where tokens and digital assets can be traded across each other and also across fiat currencies. Hence, they represent a crucial aspect of the industry in determining the mainstream adoption of cryptocurrencies and their underlying technology.
As new cryptos emerge, either as a result of brand new innovations or blockchain protocol modification (forks), their growth and sustainability depend largely on the level of demand by the community. This explains why it is such a big deal whenever new tokens are listed on any major exchange. It makes them more available and open for effective trading for members of the crypto community.
In a recent post, US-based digital asset exchange, GDAX announced that it will open its BCH-BTC Order Book on Wednesday, January 17 at 9:00 am PST. This announcement came after an initial show of support for Bitcoin Cash by the exchange some weeks before the time of writing. During its previous attempt, GDAX experienced some setback after BCH trading was halted on the platform. The halt is suspected to be as a result of ongoing investigation into how some people manage to manipulate orders across the exchange.
The typical trend when such events occur is a significant increase in value of any newly enlisted token on a major exchange. Having faced a rather controversial existence, especially during the hard fork which brought BCH into existence, the cryptocurrency has towed its own peculiar growth pattern. In its initial growth stages, we saw BCH move in the opposite direction with Bitcoin price action like a direct competitor, however, recently a more synchronized price movement pattern is observed. Overall, BCH short-term price movements have been a dicey one to call, hence the community’s expectation with this anticipated listing is not yet clear.
Roger Ver, one of the earliest investors in Bitcoin(BTC), who now appears to be the face Bitcoin Bitcoin Cash(BCH) remains unperturbed with the temporary events surrounding the cryptocurrency. Ver insists that BCH will continue in its steady growth and eventually surpass BTC in the near future.
Ver tells CCN.com:
“BCH is the same version of Bitcoin that everyone fell in love with and used from 2009 until 2017. It has the same economic code that led to it becoming a world wide phenomenon. I’m sure that formula will continue to work for BCH into the future, and it will surpass BTC in usage, popularity, and market cap in the near future.”
Some of the responses that followed the announcement by GDAX on twitter reveals mixed expectations from members of the community. While some think that the crypto has already found market stability and may not be affected much by any major listing, others still believe that going live on GDAX is a big deal.
As the entire trading volume and capitalization of the cryptocurrency market improves, the level of volatility is expected to reduce. Even though it may reduce the profit opportunities for speculators who take advantage of the huge swings in price, increased stability attract more mainstream application of cryptocurrencies. Cryptos will find more regular application as elements of transaction that will become significantly adopted for eventual organic application.
Featured image from YouTube.
Last modified: March 4, 2021 5:03 PM