• Bitcoin emerged as a clear winner in Q1 with 70% price rise and 800M transactions passed.
• Active addresses on the Bitcoin network have been on an uptrend and Taproot soft fork enabled Ordinals and BRC-20 tokens.
• Transaction count is expected to generate more revenue for miners in the form of transaction fees.
Bitcoin Emerges as Winner in Q1
Q1 of 2023 has been bullish for digital asset markets, with Bitcoin emerging as the clear winner. It recorded an impressive 70% gain in value after a rocky end to 2022, while its core network activity depicted a bullish picture amidst the broader market recovery.
800 Million Transactions Passed
Data compiled from the performance of Bitcoin’s network and asset showed that it surpassed 800 million transactions worth over $107 trillion cumulatively – a huge feat for a network only established since 2008. Despite the bear market, active addresses on the Bitcoin network have increased, with 17% of its total supply now held by entities owning less than 10 BTC.
Taproot Soft Fork Enables Tokens
The emergence of Ordinals and BRC-20 tokens on Bitcoin was made possible through Taproot soft fork which took effect last November – although this was controversial, there has been a tremendous increase in adoption of Taproot since then. As transaction count explodes, it is expected to provide more revenue for miners via transaction fees – both total transaction fees and percentage of miner revenue from fees are increasing, showing Bitcoin’s sustainable security model.
Network Hash Rate Hits Record Levels
The hash rate of the Bitcoin network is hovering near all-time highs after reaching 400 Eh/s recently – providing much needed boost to further strengthen its security model while supporting larger blocksize capacity that allows more transactions per second (TPS).
Conclusion
Overall, Q1 has seen positive developments for both Bitcoin’s core network activity and asset prices – suggesting that this could be just the beginning of another bull run within digital assets markets if these numbers continue to rise throughout 2021 and beyond.