Almost five years since the soft fork Bitcoin upgrade or SegWit was implemented, only one-third of crypto exchanges have more than 90% adoption levels, according to Glassnode.
- Glassnode’s report highlights that Binance’s adoption rate for SegWit ended in 2021 at only 10%, although the exchange has now increased to 50%, the same as Coinbase.
- Out of the 18 major exchanges in the Glassnode report, six are still using Bitcoin addresses from the number 1, missing out on the benefits promised by SegWit.
- For an upgrade that allows safer and faster Bitcoin, thus making scaling of the network faster, the low adoption now raises concerns over the exchanges’ likely adoption of the recent Bitcoin Taproot upgrade.
- Editor in chief at Swan Bitcoin, Tomer Strolight, says the fee savings and batching offered by SegWit, as well as Taproot, are irresistible advantages that will lead to an almost-universal user. He warns that fees will have to rise to become a problem to prompt the late adopters to make a full switch.
SegWit was implemented in 2017 as a soft fork upgrade to separate “witness” data from the base transaction. BTCUSD is up +6.36%.