The adoption rate of Bitcoin's SegWit has significantly influenced its network performance and price dynamics. SegWit, introduced to enhance scalability, reduces transaction fees and speeds up processing by segregating signature data. Higher adoption rates, as seen in recent years, have led to lower fees and faster confirmations, improving user experience and network efficiency. For instance, when adoption spiked above 60% in 2019-2020, mempool congestion eased, benefiting transaction throughput. However, the impact on price is less direct—while improved performance can boost investor confidence and demand, external market factors often dominate price movements. Conversely, low adoption periods have strained the network, increasing fees and delays, which can deter users and negatively affect sentiment. Overall, SegWit adoption fosters a more robust network, indirectly supporting price stability and growth over time. 0 reply
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