DigiByte’s Token Performance

DigiByte’s native token, DGB, has soared by 13%, hitting a weekly high. Trading activity for the token has also surged after the protocol reportedly approved an upgrade.

According to data from crypto.news, DGB has gone up by 13.2% in the past 24 hours. On March 25, the token reached a new weekly high of $0.009392 following news that the community approved the implementation of Bitcoin (BTC)’s Taproot activation in its operations.

At press time, DGB is trading at $0.925. Its market cap has increased alongside its price surge, currently amounting to around $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.

The tokens can be mined through a proof-of-work consensus, using computational power to solve complex mathematical problems, validating transactions, and adding them to the blockchain. DGB’s mining mechanism and scalability have been compared to earlier cryptocurrencies like Bitcoin.


Why is DigiByte’s token trending?

The DGB token has been rising since the blockchain considered 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 begun 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 how blockchains process transactions. With the Taproot upgrade, transactions require less data and work as multiple signatures can be combined for verification.

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

Another key benefit brought in by Taproot is the reduction of fees on the blockchain. The upgrade streamlines data processing, cutting down resources and leading to lower costs for users. This has contributed to high anticipation for the upgrade within the DigiByte community.

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