DigiByte Surges Over 13% Following Taproot Activation Approval

The native token of DigiByte, DGB, has experienced a 13% increase, reaching a new weekly peak. The trading volume of this token has also seen a significant surge following the reported approval of an upgrade by the protocol.

Based on data from crypto.news, DGB (DGB) has risen by 13.2% in the past 24 hours. On March 25, the token hit a new weekly high of $0.009392 after it was reported that the community had approved the integration of Bitcoin (BTC)’s Taproot activation in its operations.

At the time of writing, DGB is being traded at $0.925. Its market capitalization has also increased along with its price surge, currently amounting to approximately $162 million.

DGB is a peer-to-peer cryptocurrency and blockchain protocol that was launched in 2014. DGB tokens are typically used to facilitate payment for decentralized application and smart contract transactions on the blockchain.

These tokens can be mined using a proof-of-work consensus, which involves using computational power to solve complex mathematical problems to validate transactions and add them to the blockchain. DGB’s mining mechanism and scalability have been compared to those of earlier cryptocurrencies like Bitcoin.

Both DGB and BTC rely on a proof‑of‑work mechanism to secure their blockchains. While DigiByte also follows a PoW model, it uses five different mining algorithms, which are SHA‑256, Scrypt, Skein, Qubit, and Odocrypt.

DGB’s multi‑algorithm approach helps to prevent the concentration of mining power and makes the network accessible to a wider range of hardware—from ASICs to GPUs and CPUs.

Currently, DGB’s circulating token supply is at 17.60 billion, which is around 83.8% of its total supply. Meanwhile, there is still approximately 3.40 billion DGB that can be mined or around 16.2% of its total supply.

What is driving the trend of DigiByte’s token?

The DGB token has been increasing in value since the blockchain has been considering an upgrade to its system called the Taproot Activation process through the BIP-9 soft fork. So far, 95% of its blocks have indicated support for DigiByte adopting the Taproot Activation model.

According to the site, Digibyte has already started the process of Taproot activation. However, it is not fully active yet.

Initially deployed on Bitcoin in 2021, the Taproot upgrade is a collection of protocol updates that introduce new features that change the way blockchains process transactions. With the Taproot upgrade, transactions require less data and less work as multiple signatures can be combined for verification, rather than being aggregated individually.

Additionally, it can also improve smart contract functionality on the blockchain. In Bitcoin’s case, this feature expanded on the types of transactions that could be processed through native smart contracts on the blockchain.

Another significant benefit brought in by Taproot is the reduction of fees on the blockchain. The upgrade is able to streamline how data is processed, therefore cutting down on resources which leads to lower costs for users. This is one of the reasons why the upgrade is highly anticipated by the DigiByte community.

Disclosure: This article does not provide investment advice. The content and materials featured on this page are for educational purposes only.