The Bitcoin network activity has reached a new high since May 2021 and the Bitcoin block size is at an ATH. This was only a bear market for prices, not actual development.

Some may think that in a bear market it is always just down for everything. But especially this bear market showed that in terms of adoption and development we were hitting constant ATH as the adoption of Crypto into the mainstream just never stopped. This also goes for the King of Crypto, Bitcoin. Here we have just reached fresh highs of the highest network activity since May 2021, nearly two years ago.

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From CryptoQuant

This graph shows this and we can also try to say why exactly this has happened. One reason for the current 345k transactions per day is the last big Bitcoin update that we had in November 2021, the Taproot update to enhance privacy. The so-called P2TR transactions have been increasing rapidly as we can see below:

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From Glassnode

Another reason for this may even be that now NFTs are being stored on-chain, such as the Ordinals NFTs that have already sold for up to 9.5 BTC. All of this activity is also mirroring on the block size of Bitcoin which as just reached a new ATH as some blocks even reached a 4MB size limit which is more than the average 2MB we had before.

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Chart imported from James V. Stratten on Twitter and by Glassnode

It is clear that this right now is just a bear market for prices and that actual adoption and development is increasing at record levels.