Daily Bitcoin transaction volume has reached 682,000, a significant increase from around 250,000 in early 2023. The main reason for this increase is the growing popularity of BRC tokens20 created using Taproot addresses.
Taproot addresses have grown significantly since mid-April, indicating growing interest in Bitcoin and its related technologies. Additionally, the number of unspent transaction outputs (UTXOs) is also increasing, indicating increased activity on the Bitcoin network.
Source: CryptoQuant
However, the increased activity of Bitcoin and the popularity of BRC-20 tokens has led to a downside: network congestion. As a result, users were forced to pay exorbitant transaction fees, with the average fee per transaction surging to $30.82, the highest since February 2021.
Additionally, these high transaction fees have started to take up a large portion of miners’ income, with daily fees accounting for 42.6% of the rewards miners receive for adding new blocks to the blockchain. This is the highest percentage since December 2017, showing how the current state of the Bitcoin network affects all stakeholders, from everyday users to miners.
The surge in Bitcoin activity and the popularity of BRC-20 tokens indicates a growing interest in digital assets and the underlying blockchain technology. However, the disadvantages of network congestion and high transaction fees highlight the need for scalable solutions to address these issues.
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