In short: Bitcoin's Taproot upgrade has led to a surge in activity on the network, with over 75% of on-chain transactions using Taproot on May 7, according to Glassnode data. The upgrade has improved the privacy, scalability, and security of the Bitcoin blockchain, enabling the creation of decentralized apps. Network traffic, transaction counts, and average fees have all surged, with Bitcoin investors remaining bullish despite heightened volatility and concerns over a potential Denial of Service attack. The number of addresses sending BTC to exchanges has hit a 2-year low, indicating investor confidence in a new rally.
Our quick analysis:
Bitcoin's recent price stability under $30,000 may appear unexciting, but the network itself is seeing a significant spike in activity. The reason for this surge can be attributed to the introduction of the Taproot upgrade, which has improved the privacy, scalability, and security of the Bitcoin blockchain.
Taproot marks a milestone for the blockchain network by paving the way for decentralized apps (dApps) on the blockchain. This upgrade has introduced new signature schemes and a flexible transaction structure, which has enhanced the long-term viability of the Bitcoin blockchain to support the development of DeFi.
According to Glassnode, more than 75% of Bitcoin on-chain transactions used Taproot on May 7, which is a significant increase from only 1.536% at the beginning of the year. This adoption surge has driven network traffic and transaction counts by over 2x compared to the 2022 baseline.
The rise in Taproot's adoption has also driven miners' revenues due to the network's increased transaction fees. The average fee per Bitcoin transaction rose to $19.2 on May 7, a new high since April 2021, according to BitInfoCharts' data.
Despite the network congestion, Bitcoin investors are bullish as the number of addresses sending BTC to exchanges has hit a two-year low of over 3,700. This statistic could suggest that investors are willing to hold the asset in anticipation of a new rally.
While the volatility and FUD surrounding Bitcoin in recent months have not been insignificant, the Taproot upgrade presents a glimmering hope for the network's continued growth and evolution. The network activity that has followed Taproot's adoption is just the beginning of what could be significant improvements in the Bitcoin blockchain's functionality and reliability.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Bitcoin's recent price stability under $30,000 may appear unexciting, but the network itself is seeing a significant spike in activity. The reason for this surge can be attributed to the introduction of the Taproot upgrade, which has improved the privacy, scalability, and security of the Bitcoin blockchain.
Taproot marks a milestone for the blockchain network by paving the way for decentralized apps (dApps) on the blockchain. This upgrade has introduced new signature schemes and a flexible transaction structure, which has enhanced the long-term viability of the Bitcoin blockchain to support the development of DeFi.
According to Glassnode, more than 75% of Bitcoin on-chain transactions used Taproot on May 7, which is a significant increase from only 1.536% at the beginning of the year. This adoption surge has driven network traffic and transaction counts by over 2x compared to the 2022 baseline.
The rise in Taproot's adoption has also driven miners' revenues due to the network's increased transaction fees. The average fee per Bitcoin transaction rose to $19.2 on May 7, a new high since April 2021, according to BitInfoCharts' data.
Despite the network congestion, Bitcoin investors are bullish as the number of addresses sending BTC to exchanges has hit a two-year low of over 3,700. This statistic could suggest that investors are willing to hold the asset in anticipation of a new rally.
While the volatility and FUD surrounding Bitcoin in recent months have not been insignificant, the Taproot upgrade presents a glimmering hope for the network's continued growth and evolution. The network activity that has followed Taproot's adoption is just the beginning of what could be significant improvements in the Bitcoin blockchain's functionality and reliability.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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Please, behave!