DigiByte’s native token, DGB, has surged by 13%, reaching a weekly peak. Following the announcement of a protocol upgrade, trading volume for the token has dramatically increased.
Recent data indicates that DGB has risen by 13.2% over the last 24 hours. On March 25, the token achieved a new weekly high of $0.009392, spurred by the community’s decision to implement Bitcoin (BTC)’s Taproot activation in its operations.
As of now, DGB is being traded at $0.925. Its market capitalization has grown alongside the price increase, currently hovering around $162 million.
DGB is a peer-to-peer cryptocurrency and blockchain protocol that was established in 2014. DGB tokens serve primarily to facilitate payments for decentralized applications and smart contract interactions on the blockchain.
The tokens can be mined using a proof-of-work consensus, which involves computational power solving complex mathematical problems to validate transactions and add them to the blockchain. DGB’s mining mechanism and scalability have drawn comparisons to earlier cryptocurrencies such as Bitcoin.
Both DGB and BTC utilize a proof-of-work mechanism to secure their respective blockchains. While DigiByte also adheres to a PoW model, it incorporates five distinct mining algorithms: SHA‑256, Scrypt, Skein, Qubit, and Odocrypt.
DGB’s multi-algorithm strategy aids in preventing the centralization of mining power, thus allowing access to a broader range of hardware— from ASICs to GPUs and CPUs.
Currently, DGB’s circulating token supply stands at 17.60 billion, which constitutes approximately 83.8% of its total supply. There remains about 3.40 billion DGB available for mining, or roughly 16.2% of its total supply.
What is Driving the Popularity of DigiByte’s Token?
The DGB token has been gaining momentum since the blockchain began contemplating an upgrade to its system known as the Taproot Activation process via the BIP-9 soft fork. So far, 95% of its blocks have shown support for DigiByte’s adoption of the Taproot Activation model.
The protocol has initiated the Taproot activation process; however, full activation has yet to occur.
Originally introduced on Bitcoin in 2021, the Taproot upgrade represents a series of protocol enhancements that transform how blockchains handle transactions. This upgrade enables transactions to require less data and effort, as multiple signatures can be aggregated for verification rather than processed individually.
Furthermore, it enhances smart contract capabilities on the blockchain. In the context of Bitcoin, this feature broadened the types of transactions that could be managed through native smart contracts on the blockchain.
Another significant advantage provided by Taproot is the reduction of fees on the blockchain. By optimizing data processing, it minimizes resource usage, ultimately leading to lower costs for users. This is one of the reasons why the DigiByte community eagerly anticipates the upgrade.
Disclosure: This article does not constitute investment advice. The content and materials found on this page are intended solely for educational purposes.