Dogecoin's Daily Transactions Skyrocket After DRC-20 Tokens Introduction

Key Points:

Dogecoin transactions surge following launch of new token standard, DRC-20.
Transaction volume rises tenfold with over 645k transactions on Sunday.
DRC-20 allows for token issuance and network fees in DOGE, paving the way for DeFi services.

The daily transaction volume of Dogecoin has surged tenfold from its average daily rate earlier this week, reaching a lifetime peak.

Dogecoins Daily Transactions Skyrocket After DRC 20 Tokens Introduction

This remarkable growth was triggered by the launch of a new mechanism that now allows the issuance of tokens on the DOGE blockchain.

As reported by BitInfoCharts, the network saw over 645,000 transactions on Sunday, which briefly placed it ahead of both Bitcoin and Litecoin transactions that day before falling back to previous levels as of Wednesday. This marks a significant increase compared to the usual 20,000 transactions that Dogecoin tends to see on a daily basis.

So, what triggered this sudden growth? Well, on May 9, the DRC-20 token standard was introduced, which has led to an immediate increase in network activity. Essentially, this standard allows developers to issue tokens that take network fees in the form of dogecoin (DOGE). This adds to the value proposition for dogecoin and lays the path for potential decentralized finance (DeFi) services built on the blockchain.

However, not everyone is pleased with the DRC-20 token deployment. Critics point out that it may lead to network congestion and that it moves away from dogecoin’s aim of being used as an everyday currency. Some members of the Dogecoin community have even gone as far as to call it “shameless hype” and are advocating for a focus on the transactional currency use case.

Everyone should probably focus on the transactional currency use case.
At least it’s a good test of the network’s ability to scale.
— Paijo (@JasonPaijo) May 15, 2023

High fees and network congestion are valid concerns for any blockchain, as they may lead to the network becoming expensive and slow for everyday users. This could dampen adoption plans, which is something that the Dogecoin community should keep in mind going forward.

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