• Bitcoin ended the first quarter of 2021 in the green, with an impressive 70% price rise.
• The core network activity has also been bullish, with over 800 million transactions for over $107 trillion cumulatively.
• Activity on the network is increasing despite bear markets, with an increase in active addresses and distributed supply holding less than 10 BTC.
Bitcoin Emerges as Winner in Q1
Bitcoin recorded a 70% rise at the end of first quarter 2021, emerging as a clear winner amongst digital asset markets. Core network activity also reflected a bullish picture amidst general market recovery, with 800 million transactions and $107 trillion cumulatively passing through the Bitcoin network.
Network Activity Increases Despite Bear Markets
Despite bear markets, active addresses and distributed supply of entities holding less than 10 BTC have both increased. Taproot soft forks enabled Ordinals and BRC-20 tokens to emerge on Bitcoin – this has generated controversy but significant adoption and utilization of Taproot was observed. As transaction count rises, more revenue is expected to be generated for miners from transaction fees. Additionally, total transaction fees are increasing along with miner revenue from fees – indicating Bitcoin’s sustainable security model. Lastly, hash rate is hovering near all-time highs after hitting 400 Eh/s record level.
Taproot Soft Fork Enabled Emergence of Tokens
Taproot soft forks enabled Ordinals and BRC-20 tokens to emerge on Bitcoin – this has been controversial but a tremendous increase in adoption and utilization of Taproot was observed nonetheless. This has allowed for an increase in total transaction fees as well as percentage of miner revenue from fees – indicating that Bitcoin’s security model is sustainable.
Hash Rate Reaches All Time Highs
Hash rate is hovering near all time highs after reaching 400 Eh/s record level – offering much needed boost to overall network activity. Transactions are also exploding which will likely generate more revenue for miners via transaction fees in future quarters.
Conclusion
Overall, it appears that Bitcoin finished Q1 strongly despite bear markets – recording impressive gains and surpassing 800 million transactions cumulatively worth $107 trillion USD. Active addresses on the Bitcoin network have increased while distributed supply numbers show that entities holding less than 10 BTC have risen too – signaling growth across various facets of the network’s performance regardless of market conditions