Earlier this week, the number of transactions on Dogecoin briefly exceeded those on Litecoin and Bitcoin.
The daily number of transactions on Dogecoin increased by ten times compared to the average earlier this week, reaching a record high. This surge in transactions was attributed to the introduction of a new feature that enables the creation of tokens on the Dogecoin blockchain.
According to data from BitInfoCharts, the Dogecoin network recorded more than 645,000 transactions on Sunday. During that day, it briefly surpassed both Bitcoin and Litecoin in terms of transaction volume. However, by Wednesday, the transaction levels returned to their previous levels.
Dogecoin transactions bumped over Bitcoin briefly earlier this week. (BitInfoCharts)
Based on historical data, Dogecoin usually has around 20,000 daily transactions. However, after the introduction of the DRC-20 token standard on May 9, there was a sudden surge in network activity, resulting in an immediate increase in the number of transactions.
With the implementation of these standards, developers now have the ability to create tokens that require network fees to be paid in dogecoin (DOGE). This enhances the value of dogecoin and opens up possibilities for the development of decentralized finance (DeFi) services on the blockchain.
Critics have raised concerns regarding the DRC-20 token standard:
Despite the increase in transactions, some people are not happy about the introduction of DRC-20 tokens. Critics argue that it could cause the network to become crowded and slow, and they believe it deviates from Dogecoin’s original purpose of being a simple and accessible currency for everyday use.
One member of the Dogecoin community expressed their disapproval of the hype surrounding DRC-20 tokens on Twitter, stating that it should be stopped. Another member suggested that the focus should remain on using Dogecoin as a currency for transactions.
High fees and network congestion are legitimate concerns for any blockchain system. These issues can make the network costly and slow for regular users, which can hinder the adoption of the technology for everyday purposes.
In March, Bitcoin introduced its own ‘Bitcoin Request for Comment’ (BRC-20) standard, which resulted in significantly higher fees due to a surge in trading activity of meme coins based on the Bitcoin network.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
