Bitcoin Cash Open Interest (OI) has almost halved, and the price of the asset has also fallen, which experts attribute to the upcoming halving of Bitcoin next week.
Such a sharp decline has reversed the cryptocurrency's earlier gains, completely erasing the success of early April.
At the time of writing, the OI for Bitcoin Cash has settled at $378.3 million. This is down 47% from its peak of $708.5 million before BCH halved, according to Cointelegraph.
The reduced open interest in Bitcoin Cash is noted alongside a 13% drop in the price of BCH, according to CoinGlass.
The asset had been moving from $676 to $691 for several days before dropping nearly 8% in three hours to $608.4, CoinMarketCap reported.
After Bitcoin's first halving in 2020, bitcoin cash showed increased activity and rose 4.7%, with OI increasing 10% to $73.86 million.
Bitcoin Cash has been around for about three years. Developers have emphasized different use cases for BCH due to lower transaction processing costs and lower energy requirements to verify new blocks.
Recently, Blockstream CEO Adam Back reached out to one of Bitcoin's earliest users, Roger Ver. He suggested that he return to the Bitcoin community by abandoning Bitcoin Cash: "Join the party, it's just getting warmed up. You don't have to do it alone, come back".
Roger Ver, known as Bitcoin Jesus, is a strong proponent of Bitcoin Cash. He stated that BCH is closer to Satoshi Nakamoto's original vision of Bitcoin.
According to him, Bitcoin Cash is more in line with the asset as a savings vehicle due to its lower transaction fees.
In the midst of the pre-halving frenzy, many investors are buying up Bitcoins in anticipation of short- to medium-term growth.
At the time of publication, BTC's OI stood at $34.89 billion, 15 times higher than it was eight days before the halving in May 2020.
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