Taproot Supply Ratio
Percentage of total circulating BTC supply held in Taproot (P2TR) UTXOs. Measures actual economic migration to Bitcoin's latest script type - a purer adoption indicator than output count, which is inflated by dust and protocol overhead.
What is it?
The Taproot Supply Ratio is the percentage of total Bitcoin supply currently held in UTXOs using the P2TR (Pay-to-Taproot) script. Unlike output count (inflated by dust and inscriptions), this metric measures the real economic value that has migrated to Bitcoin's latest script type. It's the 'vote by capital' for Taproot - more significant than the vote by transaction count.
How to read
A single ascending curve (area chart). In the initial post-Taproot activation phase, the ratio remains in a pre-adoption stage (sub-1% of supply order of magnitude). The slope indicates economic migration speed. Compare with output share to gauge the economic gap. A ratio that doubles in 6 months would be a strong indication of institutional/exchange adoption. BTC price is overlaid for context.
Key zones
< 0.5%: embryonic stage. 0.5-2%: early majority - large exchanges starting cold storage migration. 2-10%: acceleration phase - wallets defaulting to P2TR. > 10%: maturation - P2TR is the standard. For historical reference, P2WPKH exceeded 40% of supply after several years of migration post-SegWit activation.
What to observe
Discrete jumps in the curve mark large holder/exchange migrations (visible because supply-weighted). The long-term trend (1y+) is the most reliable adoption indicator. BTC price corrections can temporarily slow migration (holders don't restructure during volatility).
Historical context
The P2WPKH Supply Ratio followed a classic S-curve: slow between 2017 and 2020 (a few percent), acceleration 2020-2023 (tens of percent), then saturation regime in the 40%+ zone. P2TR is starting its own S-curve, still in its initial flat phase. SegWit history suggests P2TR's inflection point is still ahead - likely triggered by a major exchange migration.
Expert notes
This ratio uses p2tr_supply (unspent BTC in P2TR) / supply (total supply). Total supply includes probably-lost coins (~3-4M BTC), which slightly underestimates the true 'active' ratio. For a purer ratio, divide by active supply (moved in last 5 years). Long-term, this metric allows measuring 'quantum exposure': BTC outside P2TR/P2WPKH are potentially more vulnerable to future quantum computers.
Common mistakes to avoid
This ratio does NOT measure 'user' adoption. A single exchange migrating cold wallets can jump the ratio from 0.3% to 1% overnight. It's a supply distribution metric, not user adoption. Additionally, the ratio can decrease if BTC is spent from P2TR without replacement (normal UTXO turnover).
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/taproot-supply-ratio/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "taproot-supply-ratio",
"timeframe": "1y"
}Required tier: free. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
Related metrics
Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.