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Bitcoin Activity Surges to Record-Breaking 682K Daily Transactions, Driven by Taproot Addresses and BRC-20 Tokens

Bitcoin transactions have hit a new record, with daily activity reaching an unprecedented level of 682,000 transactions. This figure marks a significant increase from the start of 2023 when daily transactions were around 250,000. The primary reason for this surge is the growing popularity of BRC-20 tokens, which are created using Taproot addresses.

Taproot addresses have seen a substantial rise since mid-April, indicating a heightened interest in Bitcoin and its associated technologies. Alongside this, there has also been a consistent increase in the number of Unspent Transaction Outputs (UTxOs), which signifies heightened activity on the Bitcoin network.

Source: CryptoQuant

However, this surge in Bitcoin activity and the popularity of BRC-20 tokens has led to a downside: network congestion. As a result, users have been forced to pay significantly high transaction fees, with the average fee per transaction skyrocketing to $30.82, the steepest it has been since February 2021.

Moreover, these high transaction fees have started to make up a large portion of miners’ earnings, with daily fees constituting 42.6% of the rewards miners receive for adding new blocks to the blockchain. This is the highest percentage seen since December 2017, indicating that the current state of the Bitcoin network is impacting all its stakeholders, from everyday users to miners.

The surge in Bitcoin activity and the popularity of BRC-20 tokens demonstrates a growing interest in digital assets and the underlying blockchain technology. However, the downside of network congestion and high transaction fees highlights the need for scalable solutions to address these issues.

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