• Bitcoin network activity is now at its highest level since May 2021 due to the growing popularity of Ordinals NFTs.
• CryptoQuant’s Bitcoin Network Activity Index has shown a significant uptick in recent days.
• This surge is happening because of increased transactions involving Non-Fungible Tokens (NFTs) on the BTC blockchain, which has caused block sizes to rise and hit new all-time highs.

Bitcoin Network Activity Reaches Highest Level Since May 2021

On-chain data shows that Bitcoin network activity is now at its highest level since May 2021 as Ordinals NFTs have been rapidly gaining popularity.

CryptoQuant’s Bitcoin Network Activity Index Has Shot Up Recently

As per data from the on-chain analytics firm CryptoQuant, the BTC network has seen a significant uptick in activity. The relevant indicator here is CryptoQuant’s “network activity index,” which evaluates the activity of the Bitcoin network using four metrics: total number of active addresses, number of transactions, Unspent Transaction Output (UTXO) count, and block size.

Reason Behind The Surge

The reason behind this boost in activity is that BTC non-fungible tokens (NFTs) have been quickly becoming popular. These NFTs have become possible on the BTC blockchain thanks to a system called the “Ordinals.” This protocol directly stores images on the chain using Taproot transactions and inflates block sizes when these are added to transactions.

Recent Data On The Network Activity Index

The value of CryptoQuant’s network activity index has seen an increase recently and reached its highest level since May 2021, as displayed in the graph below:

Conclusion

In conclusion, with more NFT transactions taking place on the blockchain, it looks like Bitcoin network activity will continue to remain high for some time now!