Decoding the not so obvious reason behind Bitcoin [BTC] logging heavy network traffic

With the Taproot upgrade, Bitcoin positioned itself like other conventional layer-1 blockchains, enabling deployment of smart contracts on the chain and minting of Ordinals NFTs.

, Taproot transactions accounted for over 37% of spent outputs on the Bitcoin network. The demand for Taproot was also reflected through the adoption and utilization metrics.

The data showed that on 1 May, 60% of all transactions on Bitcoin used Taproot, hitting an all-time high.Another notable trend which was worthy of attention was the growing dominance of text inscriptions over image inscriptions when it came to Taproot transactions. In fact, text inscriptions propelled more than 50% of all transactions on the Bitcoin network.

Taproot was an upgrade to improve the privacy, scalability, and security of Bitcoin. It introduced new signature schemes and a flexible transaction structure, to make transactions more efficient and cheaper.Due to the rise in network traffic, miners managed to collect huge transaction fees. Users were willing to shell out more to get their transactions validated quickly. On 3 May, Bitcoin network recorded $3.5 million in transaction fees, hitting a 2-year high.

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