2025 Full-Year Review and Analysis of Bitcoin Cash (BCH)

1. Introduction

Bitcoin Cash (BCH) is a peer-to-peer cryptocurrency forked from Bitcoin in 2017, designed for fast, low-cost payments. Unlike Bitcoin’s 1 MB blocks, BCH allows blocks up to 32 MB, giving it much higher on-chain throughput (on average ~116 transactions per second, vs ~7 TPS for Bitcoin). BCH remains a Proof-of-Work network (contrary to some confusion, it is not Proof-of-History or PoS). Its consensus still uses SHA-256 mining like Bitcoin, with 10-minute average block times, enabling very low fees (often <$0.01) on a large blocksize model. Today (mid-2025), Bitcoin Cash is positioned as a high-throughput L1 “digital cash” chain, relevant for on-chain transactions and payments. This review surveys BCH’s 2025 developments, ecosystem, market behavior, and investment case.

2. Major News About BCH in 2025

Jan 2025 – Node v28.0.1 Release

Bitcoin Cash Node 28.0.1 was released with performance enhancements (e.g. faster large-block processing, simpler ABLA checks, improved block propagation). This upgrade prepared nodes for the upcoming May 15 network upgrade (CHIPs). Impact: Maintains network stability and readies the software for 2025 improvements.

Jan 2025 – Paytaca Wallet & Merchant Onboarding

Paytaca (a BCH mobile wallet) v0.21.4 was released with support for CashTokens and other features. Paytaca also onboarded its first 2025 merchant – the Pink Berry Massage Spa in the Philippines – enabling BCH payments for services. Impact: Expands real-world BCH payment options and showcases token feature adoption.

Jan 2025 – BCH Growth Fund Hits Record

Grayscale’s Bitcoin Cash Trust (BCHG) substantially increased its holdings in 2024, locking up about 1.6 million BCH by year-end. The fund’s shares were trading at a 3–4× NAV premium (implying ~$10.4B market cap). Impact: Demonstrates strong institutional/ETF-like demand, as BCH is effectively removed from spot supply.

Feb 2025 – BitcoinCash Global Lotto Launch

A new BCH lottery dApp (“BitcoinCash Lotto”) launched, allowing participants to buy tickets with BCH for prizes. Impact: Brings a novel use-case (gaming/gambling) on BCH, potentially attracting new users.

Feb 2025 – StableHedge DeFi App (Paytaca)

Paytaca announced StableHedge, a BCH-based volatility hedging app that lets users lock BCH value via a vault mechanism. Impact: Represents early DeFi experimentation on BCH, expanding the ecosystem beyond simple transfers.

May 13–15, 2025 – BCH “Bliss 2025” Conference

The developer/community conference in Slovenia showcased upcoming upgrades. Organizers sold “Velma” NFTs for event tickets. Impact: Boosted community engagement and awareness of BCH’s roadmap; NFT gimmick signaled BCH’s use in tokenized events.

May 15, 2025 – Major Network Upgrade (CHIPs)

BCH activated the CHIP-2021-05 (VM limits) and CHIP-2024-07 (BigInt) upgrades. These changes significantly expand BCH’s virtual machine capabilities and numeric operations for scripting/smart-contract features. Impact: Lays foundation for more complex on-chain applications (enabling smart contracts akin to Bitcoin’s), a key technological catalyst.

Jul 2025 – “Knuth” Node Upgrade and Whale Accumulation

In July BCH Node v0.68.0 (“Knuth”) deployed, improving scalability and fee economics. Around July 14, BCH’s price suddenly spiked to ~$500 – analysts attributed this to a large whale buying (13th-largest BCH holder purchased >100k BCH in a week). Impact: Signals renewed large-holder interest (possibly expecting post-halving gains) and improved network throughput reducing costs.

Aug 5, 2025 – Block Halving

BCH reached its next reward halving on August 5, 2025, cutting miner subsidy from 3.125 to 1.5625 BCH (inflation now ~0.5%). Trading volumes spiked ahead of this event. Impact: Halving is a supply-side catalyst often linked to price rallies; in BCH’s case it attracted speculative buying (as noted by 1.74% price gain on Aug 5).

3. Key Catalysts Driving BCH’s Growth in 2025

Network Upgrades & Protocol Development

The May 2025 CHIP upgrades (VM Limits, BigInt) directly expand BCH’s capabilities, enabling more sophisticated on-chain logic and token functions. Earlier, the Adaptive Blocksize Limit Algorithm (ABLA, activated May 2024) already allows dynamic blocksize to match demand. These technical improvements energize developers and users, as evidenced by new dApps (Lotto, StableHedge) and wallet enhancements (Paytaca) coming online.

DeFi/Stablecoin Activity

Introduction of BCH-native stable assets (e.g. the “Moria Money” stablecoin in late 2024) and hedging platforms (StableHedge) have revived some DeFi interest on BCH. For example, the Moria (MUSD) launch quickly locked ~$25K in value within hours. Such projects demonstrate BCH’s utility beyond payments and tap into the broader DeFi resurgence.

NFT and Community Buzz

Creative use of NFTs (like the Velma NFTs sold for Bliss 2025) shows the community leveraging popular trends to promote BCH. This kind of hype, while modest in scale, helps keep BCH in public view during bullish cycles.

Institutional/Whale Involvement

2025 saw increased accumulation by large holders. On-chain metrics showed daily active addresses +71% YTD (a sign of growing usage). Notably, large BCH transactions exploded in early July then plunged just before hitting $580 – a sign that whales drove the rally but then scaled back. Continued institutional interest (via trusts) and whale trading are key growth drivers, as big players can spark momentum.

Altcoin Market Cycle & BTC Uptrend

As Bitcoin and major altcoins rallied in 2025, capital rotated into midcap tokens like BCH. The late-summer 2025 crypto bull run (Bitcoin near all-time highs) lifted BCH price and sentiment. Early August articles noted BCH’s volume-driven climb above $500 amid a broad crypto surge. Overall, macro bullish crypto market conditions remain a major catalyst for BCH’s performance this year.

4. Overview of BCH: Core Technology and Ecosystem Foundations

Consensus and Security

Bitcoin Cash remains a Nakamoto-style Proof-of-Work blockchain (mining with SHA-256), just like Bitcoin. Its fundamental design trades off decentralization/security for on-chain scale: BCH runs at only ~2–3 EH/s hashpower (vs. Bitcoin’s ~900+ EH/s), and has far fewer full nodes (~586 known as of mid-2025). This means BCH is less secure than Bitcoin but more scalable. There is no staking or PoS/PoH in BCH – miners validate blocks, and holders run nodes if they wish.

Architecture and Throughput

BCH uses the UTXO model and Bitcoin script (with enhancements) rather than an account/EVM model. The key architectural advantage is large blocks. BCH’s 32 MB block size (vs. Bitcoin’s 1 MB) allows very high transaction capacity – up to ~116 TPS on average (capable of ~200 TPS theoretically). In practice BCH handles ~113,600 transactions per day (~1.32 TPS) with block interval ~10 min, keeping fees extremely low (median fee ~$0.002). Recent upgrades like ABLA (Adaptive Blocksize Limit) let BCH adjust its maximum block size to meet demand without hitting hard caps.

Smart Contract and Token Capabilities

BCH has no built-in smart-contract language or VM (unlike Ethereum or Avalanche). Instead, it uses simple script ops and token standards (CashTokens) for basic smart functions. A May 2023 “CashTokens” upgrade introduced a native token framework, and the May 2025 VM/BigInt upgrades further enable contract-like apps. Compared to competitors: Ethereum offers fully Turing-complete smart contracts (now PoS, rich DeFi ecosystem); Avalanche (PoS/EVM) and Sui (PoS/Move VM) likewise emphasize smart asset platforms. BCH’s architectural focus is different – it prioritizes on-chain transaction throughput and simple, UTXO-based programmability. This yields higher speed/throughput (>>>7 TPS) and very low fees, at the cost of fewer built-in features.

Distinguishing Factors

BCH’s large block/UTXO design supports applications needing high volume (e.g. microtransactions, merchant payments). It also means BCH avoids complex consensus (no staking, PoS). Recent enhancements (like Schnorr signatures from earlier upgrades and new CHIPs) further reduce transaction sizes and add utility. The adaptive blocksize (ABLA) keeps BCH blocks spacious during usage spikes, an advantage few L1s match. However, BCH lacks Ethereum’s advanced ecosystem and suffers from centralization worries (fewer nodes/miners). Its core niche is as on-chain “digital cash,” offering speed and low cost that distinguish it from both Bitcoin and smart-contract chains.

5. Current Ecosystem Statistics (Mid-2025)

Supply & Network

Circulating supply is ~19.90 million BCH (out of 21 M max). Market cap is roughly $10.39 billion (about 0.27% of total crypto market). There are ~586 reachable full nodes and ~3.28 EH/s total hashpower securing the chain.

Transactions & Speed

All-time transactions ~409 million. In the past 24 hours BCH processed ~113,637 transactions (~1.32 TPS). Given 10-min block times and large blocks, BCH handles these volumes with ease (typical mempool backlog is very low). Average fee is negligible (mean ~$0.0036, median $0.002). BCH’s theoretical capacity (~200 TPS) far exceeds current use, highlighting room for growth.

Addresses & Users

Over 25.7 million addresses exist on BCH, though daily active address counts are smaller. Metrics suggest on-chain activity picked up sharply in 2025 (one analysis noted a ~72% YTD rise in unique active addresses). Wallet adoption tracks these addresses (popular wallets include Electron Cash, Bitcoin.com Wallet, BitPay, etc.). No public “active validator” count exists since BCH is PoW; instead focus is on hashpower and reachable nodes above.

Decentralized Apps / TVL

BCH’s DeFi/NFT ecosystem is small. There are a handful of dApps (e.g. Lotto, StableHedge, simple DEXs by General Protocols) and tokens (CashTokens projects). As of mid-2025, BCH was not in the top blockchains by total-value-locked; Ethereum (~$46B TVL) and others dominate that list. Example: the Moria stablecoin’s launch quickly locked ~$25K, but total BCH DeFi TVL is only modest. NFT activity is niche (e.g. the Velma conference NFTs), with no large-scale projects yet.

Ecosystem Development

Several BCH-related projects report growth. The Bitcoin Cash Node release cadence continues (last was v0.28.0.1). The Bitcoin Cash Node repository and related clients (BCHD, Flowee, etc.) have active developers, as do companies like Bitcoin.com. BCH also benefits from third-party infrastructure: miners, wallets (Electron Cash, CashShuffle, Paytaca), and data providers (Blockchair, Coin Metrics) support the network. Overall, user and developer numbers are small relative to leading chains, but the community is dedicated.

6. Sentiment Analysis of BCH in 2025

BCH community sentiment has been mixed but leaning positive this year. On social media (Twitter/X, Reddit, BCH Discord channels), posts about BCH spike around technical updates and price rallies, but otherwise remain modest. Mid-2025 price gains sparked celebratory posts (“BCH back at $500!”), while downturns or criticisms of usage lead to more subdued or skeptical commentary. For example, July’s rally above $580 triggered bullish technical analysis threads, whereas late-summer discussions noted caution (fewer whale transactions and upcoming halving).

Qualitatively, BCH forums still emphasize the “digital cash” narrative and celebrate new on-chain use (Velma NFTs, stablecoins). Community polls and upvotes on r/BitcoinCash reflect cautious optimism after upgrades. Quantitatively, metrics hint at improved engagement: one analytics report found daily active BCH addresses up ~72% in 2025, suggesting growing interest. On aggregate social-sentiment trackers (e.g. LunarCrush), BCH tends to rank low (cryptocurrency discussion is dominated by Bitcoin/Ethereum), but its sentiment score rose during bull phases.

In summary, public perception has warmed somewhat with the summer’s rally and tech progress. Advocates point to improved fundamentals and price strength, while critics still argue BCH remains niche compared to larger ecosystems. Overall, sentiment is cautiously positive among holders, but BCH is largely overshadowed in broader crypto discussion.

7. Fundamental Analysis

Tokenomics

BCH has a fixed 21 M supply with halvings every four years. Its last halving was April 2024 (block reward 6.25→3.125), leaving 3.125 BCH per block (~0.5% annual inflation now). The next halving on Aug 5, 2025, will cut the reward to 1.5625 BCH. There was no ICO or premine; coins are distributed solely via mining. Economic incentives thus align with Bitcoin’s model (scarcity and miner rewards). BCH has no formal treasury or token burning mechanism – the only “reserve” activities are ad-hoc (e.g. BCHG trust holding coins off-market).

Developer & Project Activity

BCH development is open-source and community-driven. Key teams include the Bitcoin Cash Node devs (knowing releases like v28.0.1, “Knuth” v0.68.0) and Bitcoin.com (Bitcoin ABC client). In 2025 developers deployed important upgrades (like the May CHIPs). Developer engagement can be measured by GitHub commits and events: for example, BCH Core’s GitHub shows hundreds of commits in the last year. Projects like CoinSpice and Bitcoin.com fund developer work to some extent. Partnerships are limited – BCH has no major corporate backer, though wallets (BitPay, Paytaca) and merchants (selected stores/restaurants) continue to accept BCH. A notable “institutional” channel is the BCH Growth Fund (BCHF), which raised ~$600k in donations for BCH projects. Compared to competitors, BCH’s developer ecosystem is tiny: Ethereum, Avalanche and Sui each have large independent foundations (and corporate support) fostering dApps. BCH has no official DAO or ecosystem fund (unlike say Cosmos or some DeFi blockchains).

Technology Roadmap & Upgrades

BCH’s roadmap is evolutionary, via Cash Improvement Proposals (CHIPs). The May 2025 CHIPs (VM Limits, BigInt) are critical steps. Future proposals under discussion include privacy features (CoinJoin) and more script opcodes. Comparatively, Ethereum’s roadmap is moving to “The Surge” (sharding, etc.), Avalanche is focusing on scaling and interoperability, and Sui is building Move-based capabilities. BCH’s developments are simpler but fundamental, aiming to expand core functionality without altering its PoW model.

Comparisons

Against Ethereum: BCH lacks an internal smart-contract VM (Ethereum’s PoS chain has massive DeFi and NFT ecosystems) but gains in transaction capacity and fee stability. Both have 21M caps, but ETH inflation is higher (~2%). Against Avalanche/Sui: those use PoS for instant finality and complex smart ops; BCH has higher barrier (longer blocks) but achieves more on-chain volume. In short, BCH competes on payments/throughput, while others compete on programmability/complexity.

Financials

BCH’s treasury is essentially non-existent (no side fund). Its only comparable “reserve” was the BCHG trust, which effectively took ~1.6M coins out of circulation. Developer grants/donations (via BCHF) are modest. The largest financial actor is miner revenue: block rewards + fees (today ~$50–$100k/day to miners, far below the ~$7M/day for Bitcoin). In sum, BCH has little external funding beyond its blockchain incentives. This lean setup is similar to Bitcoin’s model but limits scaling of ecosystem unless new revenue sources (fees, token sales) appear.

8. Technical Analysis

BCH’s 2025 price action has been bullish overall. After consolidating near $350–$400 in spring, BCH broke higher in summer. By July 27, BCH reached ~$583 (a one-day +5.3% jump), and was up ~17% over the prior 30 days. Analysts noted BCH had broken out of a falling wedge on the weekly chart – a classic bullish signal – suggesting upside towards $620–$680 next. In late July, CoinDesk reported BCH traded at ~$572 (+17.2% month). Key resistance formed around the $580–600 range; support held near $550–560 (the “supply wall” zone). Volume and RSI indicators also turned bullish with the breakout.

Going into early August (pre-halving), BCH was trading around $570–580. Notably, large “whale” transaction volume plummeted even as price rose: on August 3rd, big transactions dipped under $200M (the lowest in 20 days). This divergence is viewed by traders as a bull-trap warning. In technical terms, BCH has formed higher lows along a rising trendline, indicating steady buying pressure. Resistance levels to watch are roughly $580, then ~$620–680 (as analysts predicted). Support now lies around $550. If BCH clears $600 with conviction, many chartists project a continuation toward its 2024 highs near $1000 (though a full return to those levels seems a stretch without major news). BCH’s patterns have correlated loosely with Bitcoin’s moves – when BTC rallied in late July, BCH also advanced – but the mid-2025 rally owes much to BCH-specific events (e.g. “Knuth” upgrade, halving anticipation).

Overall, BCH’s 2025 chart shows a strong mid-year uptrend. Consolidation zones ($500–550) gave way to breakouts above $580. Momentum indicators (RSI/MACD in July) signaled strength, though volume waned near resistance. Traders will watch the halving event for potential volatility. If halving drives new buyers, BCH could test $600+; if not, a pullback to $520–540 is plausible. In all, technicals in 2025 suggest a cautiously optimistic bullish trend for BCH (as summarized in recent forecasts).

9. Fortuna Insight for BCH in 2025

Artificial Intelligence market analysts predict mixed, but cautiously optimistic prospects for BCH. Data from 2025 shows BCH with strong on-chain growth (active addresses +72%), successful protocol upgrades, and a recent price breakout. Combining these signals, an AI might forecast that BCH is in the early stage of a bull phase. For example, BCH’s price clearing $580 has already led some analysts to project $620–$680 targets. Our “Fortuna” model notes that this rally was driven by whale activity and increased adoption (Paytaca integration, merchant usage, BCHG trust buying) – factors that could sustain momentum short-term.

However, Fortuna also weighs risk signals: the plunge in large transactions indicates some selling pressure even in a rising market. Macro factors (crypto regulation, Bitcoin corrections) could damp enthusiasm. Thus, Fortuna’s forward-looking interpretation is that BCH may continue rising modestly if Bitcoin stays strong, potentially retesting previous highs near $700 by late 2025. But it also predicts periods of volatility, especially around the halving event and any negative crypto news. In sum, BCH’s fundamentals (high TPS, active upgrades) support a medium-term bullish case, but Fortuna cautions that realization depends on renewed user adoption and stable market conditions.

10. Investment Potential of BCH in 2025

Based on the above, BCH presents a speculative but intriguing medium-to-long-term case. On the positive side, BCH offers compelling utility: it is one of the fastest and cheapest major Layer-1s. The recent on-chain growth (more addresses and transfers) and active development (wallets, stablecoins, DEX projects) suggest usage is climbing. The fixed supply and halving mean BCH could benefit from any future scarcity premium if demand grows. The network improvements (CHIPs, ABLA) have lowered barriers for developers, potentially leading to more applications. Historically, BCH has often traded at significant discounts to Bitcoin; if narrative shifts towards its “digital cash” role, that discount could narrow. Indeed, one analysis argued BCH’s fundamentals and bullish momentum make it attractive for holders with a horizon beyond a few months.

On the other hand, investors should be aware that BCH’s market cap ($10B) is small compared to giants like Ethereum ($420B) or even Binance Smart Chain. Its adoption is nowhere near mainstream, and it competes with a flood of L1/L2 projects. The on-chain statistics still lag other chains (e.g. daily transactions on Ethereum are several times higher). Technical charts show BCH just outperforming many altcoins so far, not runaway leaders (7-day/30-day gains are positive but not extraordinary). If a new crypto bear trend emerges, BCH could underperform given its smaller ecosystem.

Overall, BCH could be a reasonable portfolio choice for crypto enthusiasts bullish on on-chain cash usage. It has real utility (payment rail, merchant acceptance, microtransactions) that many altcoins lack. The low fees and high throughput make it attractive for point-of-sale and remittances. If global crypto adoption grows or new regions seek digital cash solutions, BCH could capture some of that demand. The low circulating supply (growing only 0.5% per year) also underpins a store-of-value component. However, given its risks (see below), BCH should be seen as a higher-risk, higher-reward crypto bet rather than a blue-chip asset. Investors inclined to speculate on crypto fundamentals might allocate a small percentage to BCH as part of a diversified strategy (especially if they believe in on-chain cash use cases).

11. Weaknesses and Risks from an Investor’s Perspective

Security/Decentralization

With only ~586 nodes and 2–3 EH/s hashpower, BCH is relatively vulnerable. Its hashrate is far below Bitcoin’s, so a large miner or collusion could pose a 51% attack risk. Fewer nodes also means less geographic and consensus decentralization. This technical risk is unique to BCH’s model and could deter cautious investors.

Adoption & Usage

BCH’s real-world usage remains low. There are far fewer dApps, merchants, and users on BCH than on smart-contract platforms. If adoption stalls, demand could dry up. Moreover, if Bitcoin’s second-layer solutions (like Lightning Network) succeed, they could siphon away BCH’s use-case for low-fee transactions.

Market Competition

The crypto landscape is saturated. Many projects offer fast, cheap transactions (e.g. Solana, Avalanche). Investors worried about BCH must believe in its differentiated value (on-chain cash with simple rules). There’s also risk of network upgrades (like any crypto) failing or forks causing splits. BCH itself underwent a contentious fork in 2018 (BCHABC vs. BCHSV), showing community divisions can arise.

Volatility and Liquidity

BCH is far more volatile than major assets. Its one-year return was only +1% (and –7% YTD as of mid-2025), but it still swings tens of percent. Liquidity is moderate; large sell orders can move price significantly (as shown by past Bitcoin.com sales). Investors must be ready for wild swings.

Regulatory Uncertainty

Though BCH is structured as a commodity-like digital cash, regulatory changes in crypto affect all coins. For instance, if stablecoin regulations tighten or exchanges delist lesser-known coins, BCH could suffer as a smaller asset. There’s also social/political stigma: BCH supporters emphasize “freedom money,” but regulators might not be sympathetic.

Community and Developer Risk

The BCH community is passionate but small. Key individuals (like Amaury Séchet or Bitmain supporters) have gone separate ways in the past. If core developer interest wanes, BCH could stagnate. There’s no corporate entity committed to BCH long-term, so it relies on volunteers.

Whale/Centralization Risk

As noted, whale activity has driven 2025 rallies. If large holders decide to exit, it could crash the price. The recent fall in whale transactions before price rises is an example: investor confidence can shift abruptly.

Investors must weigh these vulnerabilities. BCH’s promise of cheap on-chain cash comes with trade-offs in security and adoption. The biggest risks are network centralization and lack of growth beyond speculation. Any investment in BCH should account for these and not assume the coin’s past trends automatically continue.

12. Conclusion

In the first two-thirds of 2025, Bitcoin Cash has shown renewed momentum and potential. The network has matured technologically (with key upgrades in May 2025) and is handling more transactions, while prices have rebounded from 2024 lows. Major events – improved developer tools, a BCH-centric conference, and institution-like demand – all point to a healthier ecosystem. Public sentiment has become cautiously optimistic, buoyed by price rallies above $500 and innovative community projects (lotteries, stablecoins, NFTs).

However, BCH’s future is not guaranteed. It remains a niche chain overshadowed by larger blockchains. Its fundamental strengths (on-chain scaling, low fees) could become more important as crypto adoption grows. But the weaknesses – smaller network, competitive alternatives, volatility – are real. By late 2025, BCH may well thrive if it can sustain adoption and benefit from broader crypto upsides. If developments stall or markets sour, it may merely survive without significant gains. A collapse seems less likely given the committed community and built-in scarcity, but it can’t be ruled out if sentiment swings negative.

Overall, BCH’s outlook is mixed. The chain has demonstrated resilience and continues delivering on its “digital cash” promise. Its medium-term investment case is supported by visible on-chain growth and technological upgrades. For long-term holders who believe in on-chain utility, BCH might thrive. For others, it may simply keep pace as a minor player. The coming halving and market cycles will be telling – BCH’s trajectory in late 2025 will reveal whether its year-to-date recovery was the start of a durable uptrend or a temporary blip. Only time will tell if Bitcoin Cash cements its relevance or remains a second-tier crypto survivor.