Segwit Adoption and Hashrate to All-Time Highs Again

Despite bitcoin’s recent drop, the network’s fundamentals look better than ever. The hash rate continues to break record after record, and SegWit adoption rose above 50% several times in September.

In July, we reported that the collective computing power of the miners securing the Bitcoin network, also known as the hash rate, had risen to a new all-time high of 74.5 Exahashes per second (EH/s).

Since then, the growth in hashrate continued at a rapid pace and a new milestone was reached with the breaking of the 100 EH/s barrier on September 18. The new hashrate record stands at 108.5 EH/s, an impressive growth of about 45% in less than three months.

The adoption of SegWit also continued to grow. In September, the percentage of bitcoin transactions using SegWit grew above 50% several times. SegWit is a scalability solution that was introduced in 2017 via a UASF, which allows more transactions to fit in a Bitcoin block. As a result, the transaction capacity increases and that leads to lower miner’s fees . In addition, new technologies such as the Lightning Network and Schnorr Signatures are possible thanks to SegWit.

The increase in the use of SegWit is perhaps one of the reasons why the number of bitcoin transactions per day has remained high for several months, while the transaction costs in the form of miner’s fees have been quite low for some time now.

For example, about 300,000 to 350,000 bitcoin transactions are currently being made per day. Historically, we are moving into higher spheres that are not far from the peak peaks in late 2017 and early 2018. Nevertheless, transaction costs have fallen drastically compared to then.

Sources: Bitcoin.nl, p2sh.com, bitcoinity.org

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