Over the years, Bitcoin has evolved from a pure store of value into a more usable asset, with growing adoption in the payments sector.
As a result, consensus protocols and fee-paying transactions are becoming a bigger focus, as outlined in the BIP-110 proposal. However, not everyone is convinced this is the right direction, with Michael Saylor among its biggest critics.
In a post on X, Michael Saylor outlined 110 reasons why he believes BIP-110 is a bad idea.
His criticism targets Version 1.0.0 of the proposal, known as the “Reduced Data Temporary Softfork,” which reached complete status on the 25th of June, 2026. The proposal introduces a soft fork, prioritizing fee-paying Bitcoin transactions over non-financial data.
Source: Token Terminal
Notably, the on-chain data already reflects the growing focus on transaction activity.
As the chart above shows, Bitcoin processed well over 56 million transactions in Q2 2026, setting a new quarterly record and surpassing the previous high of 55 million recorded in Q3 2024.
The surge signals growing network usage, reinforcing Bitcoin’s shift beyond its long-term store-of-value role.
Against this backdrop, it’s easy to see why Michael Saylor doubled down on his criticism of BIP-110. In a follow-up post on X, he argued that Bitcoin’s [BTC] long-term strength lies in deeper adoption by public companies, rather than protocol changes aimed at expanding utility.
Interestingly, when viewed alongside a key on-chain divergence, Saylor’s argument begins to carry more weight.
Bitcoin’s valuation outpaces network adoption
Bitcoin’s valuation is rising faster than its adoption.
This comes even as Bitcoin’s transaction activity reaches a new all-time high. Despite a stronger push toward greater utility through the BIP-110 soft fork, Bitcoin’s market cap continues to grow faster than user activity.
This growing gap suggests that speculation is playing a larger role in driving BTC’s valuation.
As the chart below shows, Bitcoin’s Metcalfe Ratio is currently around 3.23. When the ratio rises, it means the price is moving further away from the growth in network participation.
In essence, BTC’s price is gaining faster than adoption, highlighting the growing speculative side of the current cycle.
Source: Alphractal
In this context, Saylor’s push for greater BTC exposure among public companies starts to make sense.
As the market focuses more on consensus upgrades, network efficiency, and overall scalability, the debate around Bitcoin’s long-term fundamentals continues to grow.
Meanwhile, rising speculative activity raises questions about whether BTC’s store-of-value narrative needs stronger institutional adoption.
Taken together, these factors put Bitcoin’s valuation narrative under greater scrutiny, as the market weighs network growth, and adoption against the growing speculation driving the current cycle, creating massive liquidity clusters around key BTC levels.
Final Summary
- Bitcoin’s network activity is growing, with record transaction levels and more focus on utility through proposals like BIP-110.
- Bitcoin’s valuation is rising faster than adoption, showing that speculation is playing a bigger role in BTC’s current cycle.
