Crypto community left shocked as Dogecoin (DOGE) reaches an all-time-high of daily transaction volume. A whopping total of 719,894 transactions were made only on Tuesday, topping over Bitcoin (BTC) and Litecoin (LTC).
Key Highlights:
- Dogecoin daily transactions reach close to 720K on Tuesday, overtaking Bitcoin and Litecoin in the process.
- The sudden jump is believed to circulate around the introduction of DRC-20 token standard.
- New token standard allows users to track fungible and non-fungible tokens by embedding data into shibes (smallest Dogecoin unit).
- Dogecoin maximalists fear price inflation and clogging of network due to high transaction numbers.
Dogecoin Reaches Lifetime High of Daily Volume
From humble beginning as an altcoin, Dogecoin reaches transaction peak before dropping down to general numbers. The cryptocurrency that kicked off as a joke in 2014 did not receive popularity for quite a long time. However, as popularity grew, many hopped in to make a quick bank, and currently holds a market cap over $10 billion.
On a usual day, approximately 20,000 transactions are made using $DOGE, but on Tuesday, it increased to 719,894, over 3,000% jump. The latest introduction of DRC-20 token on May 9 is believed to be a prime cause of this sudden uproar of daily transactions.
DRC-20 token standard helps developers to issue tokens like DOGE which are often used as transaction or network fees. Using the new standard, users are able to access an open-to-use system for embedding data onto smallest Dogecoin units. This protocol is also known as “Doginals,” and enabling users to track not only fungible tokens but NFT’s too. DPal is one such Chrome extension which is being used in the process.
This could be a trigger factor for the meme coin as this opens up a prospect for Dogecoin to introduce decentralized finance services.
Meme coins generally do not have any strong use case but in this case, DeFi services can be launched considering the hype and potential it holds. BitInfoCharts revealed the volume comparison of Dogecoin (DOGE) with Bitcoin (BTC).
Heavy Criticism on DRC-20 Token Standard
Even though the high transaction value of Dogecoin is a positive sign for the adoption of meme coins, some users are left worried. Members have gone to the length of calling this turn of event a “shameless hype.”
The other members of the Dogecoin community continued to say:
“Everyone should probably focus on the transactional currency use case”
According to the DRC-20 critics, an overhype of DOGE can end up congestion in the network and even “clog the main net with images.” For real-life adoption of the meme coin, users need to keep it operable for regular use.
Concerns related network flow and fees inflation still sneaks around the minds of crypto enthusiasts. Just in the last month, the ‘Bitcoin Request for Comment’ or BRC-20 standard was introduced. Since then, the transaction value has only increased and ultimately hitting the peak on Tuesday. The Dogecoin community is still unsure about the end result of this move, but feel deeply concerned about increased expenses of transaction.
