• Bitcoin Taproot utilization has hit a new all-time high, thanks to the emergence of Ordinals on the network.
• Glassnode’s weekly report shows both Taproot adoption and utilization have hit all-time highs recently.
• The “Taproot adoption” indicator quantifies adoption based on the percentage of total Bitcoin transactions that include at least one Taproot input involved in them.
Bitcoin Taproot Utilization Reaches All-Time High
What is Taproot?
Taproot is a Bitcoin upgrade that introduced changes to how transactions are processed in order to make them faster and more efficient. It went live back in November 2021.
The Problem with Adoption Metrics
Glassnode’s report on SegWit adoption from last year pointed out how the metric used for monitoring SegWit adoption only cares about how many transfers include at least one such input, ignoring the finer details of the transactions. To solve this issue, Glassnode came up with a “utilization” metric which actually counts all the spent outputs involved in a transfer and calculates the value based on their total.
How Does This Relate to Taproot?
This same methodology was applied to measure Taproot adoption and utilization, resulting in an all-time high of 4.2%. This indicates that more users are taking advantage of this upgrade and its benefits, making Bitcoin transactions faster and more secure.
Conclusion
The recent surge in Taproot utilization indicates that people are taking advantage of this upgrade, making Bitcoin transactions faster and more secure than ever before. As it continues to gain traction among users, we can expect even higher levels of utilization going forward.