The introduction of the DRC-20 token standard has caused a surge in daily transactions on the Dogecoin chain, surpassing Bitcoin and Litecoin at its peak.
Surging Dogecoin transactions outshine Bitcoin and Litecoin
Dogecoin transactions skyrocketed to a record-breaking 650,000 on May 14, as reported by Mishaboar, a prominent figure on Twitter. The surge in activity has been linked to users swarming the Dogecoin network in order to mint the newly introduced tokens. Fueling the hype surrounding DRC-20 tokens are various Twitter accounts that tout their potential and draw comparisons to the popular BRC-20 tokens, which have recently suffered from a market decline.
Cryptocurrency enthusiasts and investors have been captivated by the sudden surge in Dogecoin transactions. On May 14, the daily transactions on the Dogecoin chain reached a peak of approximately 630,000, outperforming Litecoin’s roughly 350,000 daily transactions and falling just short of Bitcoin’s numbers. Subsequently, Bitcoin and Litecoin transactions have displayed an upward trajectory, while Dogecoin’s daily transactions have experienced a slight decline.
The rise of DRC-20 tokens fuels Dogecoin transaction surge
The surge in activity on the Dogecoin network can be attributed to the adoption of the DRC-20 token standard. Users have eagerly embraced these tokens, leading to an upsurge in transactions. Mishaboar, a prominent Twitter user who shed light on the increase in Dogecoin transactions, stated, “Over the past two days, many individuals have been rushing to mint these ‘tokens’.”
Introduced on May 9, DRC-20 tokens share a similar technical framework to BRC-20 tokens. These tokens enable the recording of digital assets on the smallest units of Dogecoin, known as elons. With 100,000,000 elons per Dogecoin, users can inscribe arbitrary content, allowing for the creation of Dogecoin-native digital artifacts. This includes both fungible and non-fungible tokens (NFTs), all without the need for a separate token or sidechain.
A notable factor driving the interest in DRC-20 tokens is the narrative propagated by numerous Twitter accounts. These accounts assert that DRC-20 is the next big thing after BRC-20, with tokens minted on this standard having the potential to experience 100-fold growth. It is important to note that BRC-20 tokens reached a peak market valuation of $1 billion on May 8 due to the frenzy surrounding meme coins. However, the market cap valuation has since declined.
Concerns arise as market value of BRC-20 tokens declines
The decrease in market value of BRC-20 tokens, along with a significant 61% drop in the value of Pepe, an ERC-20 token that played a significant role during the meme season, has sparked concerns regarding the momentum of meme coins in the present cycle. Speculation has arisen suggesting that the excitement surrounding meme coins may be waning. As a result of this downturn, investors have begun to venture into alternative opportunities, including the emerging DRC-20 tokens.
DRC-20 tokens drive Dogecoin transaction boom
The introduction of DRC-20 tokens has ignited a surge in daily transactions on the Dogecoin chain, although it is still in the early stages. Users are capitalizing on the minting possibilities offered by these tokens, and their appeal has been heightened by drawing parallels with the widely popular BRC-20 tokens.
Elon Musk to the rescue? Uncertain future for DRC-20 tokens
As the market for meme coins undergoes fluctuations and investors search for fresh avenues, the future of DRC-20 tokens remains uncertain. Nevertheless, their influence on Dogecoin’s transaction volume exemplifies the potential for innovation and expansion within the cryptocurrency realm. Notably, if Elon Musk were to become involved, the prominence of DRC-20 tokens in the crypto-sphere may skyrocket.