Bitcoin (BTC) SegWit Adoption Back To Reaching All-Time Highs, Accounting For Nearly Half
Bitcoin Segwit Adoption Back To Reaching All-Time Highs While BTC Transaction Count Declines
Bitcoin Segwit adoption is yet again on the rise close to reaching the peak. In October last year, Segwit adoption reached its all-time high of nearing 51 percent. In mid-February, this year, it reached close to this peak at over 45 percent. On March 9th, it went even closer to about 47 percent.
Source: Woobull Charts
Crypto analyst, Willy Woo took to Twitter to share that this surge in Bitcoin segwit adoption has been due to VeriBlock as he explains,
“Now that VeriBlock is unloading off the Bitcoin chain, Segwit as a % of all transactions reverts back to reading near all-time highs, approx 47% right now.”
According to the self-published figures of VeriBlock, they were responsible for 25 to 45 percent of Bitcoin’s transaction count during its active testnet phase. The testnet of the project ended on March 4th which is not only driving the segwit adoption up but have also resulted in a dip in the Bitcoin transactions count that has fallen by about 21 percent.
The newcomer that is aiming to secure alternative blockchains and improve the blockchain scalability, Veriblock uses bitcoin OP_RETURN transactions for adding security benefits.
According to digital asset research and analytics firm CoinMetrics,
“The recent collapse in BTC transaction count seems to correlate with the end of the Veriblock testnet (on March 4th) which was accounting for 20-30% of BTC transactions.”
Though, it does say, Venezuela blackout as we reported could also be responsible for some of this drop, “the Veriblock testnet ending correlates perfectly with the drop and would explain the entire decline.”
“To put it another way, to count (red) is just converging to the active address (blue) trend. They became decoupled in late 2018 when the Veriblock testnet began. The seasonality you see is Bitcoin's lower usage on the weekend.”
However, we could expect another dump incoming as the mainnet of the VeriBlock launches on March 15.