According to the data, due to the emergence of Ordinals on the Internet, the utilization rate of the main customers of Bitcoin has now reached a record high.

The utilization rate of Bitcoin Taprot hit a record high of 4.2%

According to Glassnode's latest weekly report, the adoption rate and utilization rate of Taprot have recently reached a record high. "Taprot" is a BTC upgrade. It has made some changes to the transaction management method to make it faster and more effective. The update will be released in November 2021.

The "Taprot adoption rate" here is an indicator that warns us of the increased adoption rate of consumers on the Internet. The design inspiration of this indicator comes from the one proposed by the community to regulate the adoption of SegWi (SegWi is another BTC protocol, widely used in 2017).

Like SegWit, Taprot uses quantitative analysis based on at least one Taprot keying in the percentage of total Bitcoin sales and purchases.

However, this approach has a key drawback. Glassnode's report on the adoption of SegWit last year summarized the difficulties with the examples in the following figure:

In this example, the core transaction management involves one SegWit input (and four legacy transaction management), while the right transaction management has five SegWill inputs. Because the index used by SegWit only focuses on the number of transactions including at least one such input, the right side of the positive middle transaction will be regarded as SegWi transactions.

According to this indicator, two thirds of the sales here are SegWit, so the adoption rate is also 66%. However, it is very obvious that this is not an accurate indication of the specific application of the agreement, because the indicator ignores the finer details of the matter.

To solve this problem, Glassnode gives the "utilization" indicator, which in fact measures all occupancy exports involved in the transmission, and calculates the value according to its total number. If this new indicator is applied to the above examples, the utilization rate is expected to exceed 40%. Only 6 of the 15 inputs in this place are ready for mobile phone software.

Return to Taprot. The same method can also be used to distinguish the acceptance of bitcoin enhancement. The following shows the adoption trend and utilization rate of the 7-day moving average (MA) Taphroot since the update in November 2021:

As shown in the figure above, the adoption rate and utilization rate of the main stem of 7-day MA Bitcoin have risen rapidly recently, reaching record highs of 9.4% and 4.2% respectively. The adoption rate here is more than twice the utilization rate, which further illustrates how fraudulent the scenario presented by the previous indicator is.

The reason why Taprot's utilization rate suddenly soared was that Ordinals rose in the market. Ordinals is a protocol that uses Taprot to load them into the verification part of BTC matters.

In short, what Ordinals allows users to do is to add images and other things to the BTC transaction process, which led to the birth of irreplaceable tokens (NFT) on the blockchain. With the rapid and widespread application of this NFT, Taprot has also noticed more applications, which is not surprising.

BTC price

At the time of writing, the transaction price of Bitcoin was about $21800, down 5% last week.