• Bitcoin network activity is now at its highest level since May 2021, due to the increasing popularity of Ordinals NFTs.
• CryptoQuant’s Bitcoin Network Activity Index has been steadily rising as a result of this increased activity.
• The index is composed of four indicators, including total active addresses, number of transactions, Unspent Transaction Output count and block size.

Bitcoin Network Activity on the Rise

The Bitcoin network has experienced a surge in activity in recent days thanks to the rapid growth of Non-Fungible Tokens (NFTs) on the network. This increase in activity has been tracked by CryptoQuant’s “Network Activity Index,” which evaluates four key metrics: total active addresses, number of transactions, Unspent Transaction Output (UTXO) count and block size.

CryptoQuant’s Bitcoin Network Activity Index

CryptoQuant’s “network activity index” provides an overview of Bitcoin network activity by looking at four key metrics: total active addresses on the network (addresses involved in at least one send/receive transaction), number of transactions, Unspent Transaction Output count (UTXOs) and block size. The value of this metric has seen a considerable rise in recent days due to the rise in NFT usage on the blockchain.

Ordinals NFTs Fueling Increase In Activity

The reason behind this boost in activity is that BTC non-fungible tokens (NFTs) have become increasingly popular recently. These NFTs are created using a system called “Ordinals” which directly stores images onto the chain using Taproot transactions. As these NFTs are stored directly on the blockchain itself, they take up space which inflates the average block size when added to a transaction – resulting in an increase in CryptoQuant’s “Network Activity Index” value.

Achievement Of Highest Level Since May 2021

Data from CryptoQuant shows that this increased activity has resulted in the index reaching its highest level since May 2021. This marks a significant milestone for Bitcoin as it continues to grow and expand its use cases beyond just being used as a digital currency or store of value asset.

Conclusion

In conclusion, Bitcoin network activity is now at its strongest level since May 2021 due to growing demand for Ordinals NFTs – tracked by CryptoQuant’s “Network Activity Index” with four key metrics: total active addresses on the network, number of transactions, Unspent Transaction Output count and block size.