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 (DGB) has gone up by 13.2% in the past 24 hours. On March 25, the token has reached a new weekly high of $0.009392 following news that the community has approve the implementation of Bitcoin (BTC)’s Taproot activation in its operations.
At press time, DGB is trading hands 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 usually 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 has been compared to 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 employs five different mining algorithms, which are SHA‑256, Scrypt, Skein, Qubit, and Odocrypt.
DGB’s multi‑algorithm approach helps to prevent the centralization of mining power and makes the network accessible to a wider range of hardware—from ASICs to GPUs and CPUs.
At the moment, 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.
Why is DigiByte’s token trending?
The DGB token has been on the rise 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 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 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 key 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 represent investment advice. The content and materials featured on this page are for educational purposes only.
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