Taproot Utilization Hits New All-Time High: Get 150% Welcome Bonus Now!15. February 2023
• Bitcoin’s Taproot utilization has hit a new all-time high, thanks to the emergence of Ordinals on the network.
• Taproot is a BTC upgrade that introduced changes to make transactions faster and more efficient.
• Glassnode has developed a “utilization” metric that quantifies adoption based on the percentage of total Bitcoin transactions with at least one Taproot input involved in them.
Bitcoin Taproot Utilization Hits All-Time High
What is Taproot?
Taproot is an upgrade for Bitcoin (BTC) which introduces changes to how transactions are processed, making them faster and more efficient. It went live back in November 2021.
Taproot Adoption Metric
Glassnode has come up with an indicator to measure Taproot adoption – it quantifies adoption based on the percentage of total Bitcoin transactions with at least one Taproot input involved in them. However, this methodology had some flaws as it ignored finer details of the transactions.
Introducing Utilization Metric
To solve this issue, Glassnode came up with a new “utilization” metric which counts all the spent outputs involved in a transfer and calculates their value accordingly. This gives us a more accurate representation of actual utilization of the protocol.
The latest report from Glassnode shows that both Taproot adoption and utilization have hit all-time highs recently. The introduction of “utilization” metric helps keep track of actual utilization for better understanding of where we stand when it comes to adoption and usage numbers for Taproots on Bitcoin network.