Dogecoin transaction volume flips Ethereum amid DRC-20 token fever
Dogecoin's transaction volume and hashrate has recorded tremendous growth thanks to the hype surrounding DRC-20 tokens.
Dogecoin (DOGE) recorded a significant surge in its network activity over the last two days, processing more than 4 million transactions between May 27 and 28, according to BitInfoCharts.
The increase surpassed the number of transactions processed by its more storied rivals like Ethereum (ETH) and Bitcoin (BTC). ETH recorded 1.9 million transactions during the reporting period, while BTC saw less than 1 million transactions.
The data shows that the trend has been consistent for the last seven days. Between May 22 and 28, Dogecoin completed over 9 million transactions, while the Ethereum network recorded around 6 million transactions. Bitcoin completed 3.3 million transactions during the same period.
Dogecoin’s network activity surge driven by DRC-20 tokens
Following the increasing popularity of Bitcoin’s BRC-20 tokens, DOGE enthusiasts implemented a similar model, namely DRC-20 tokens, which contributed to the surge in Dogecoin’s transaction volume.
The DRC-20 model facilitates the creation and trading of tokens on the Dogecoin blockchain, similar to how ERC-20 tokens function on the Ethereum network but using the BRC-20 standard as inspiration.
The hype surrounding these new assets has led to the proliferation of these tokens within the crypto community. A Dogecoin enthusiast, Mishaboar said:
“DRC20 tokens are minted on the Dogecoin chain because of the low fees, and for a kind of “fetish” of minting meme tokens on top of the meme coin blockchain that started it all.”
The increasing network activity has raised concerns among some community members, who argue that it could lead to network congestion and negatively impact Dogecoin’s primary goal of providing an efficient, low-cost, and accessible means of everyday transactions.
DOGE’s climbing hashrate
Meanwhile, Dogecoin’s rising transaction volume coincided with a period of increasing hashrate — up 38% in May.
According to Minerstat data, Dogecoin’s hashrate jumped to 934.03 TeraHash per second (TH/s) from 660.61TH/s recorded on May 1.
Usually, an increasing hash rate suggests that the number of miners on a network is rising. It can also measure the strength of blockchain health and security.
Despite the increase in network activity and hashrate, Dogecoin’s price has remained relatively unaffected, with the digital asset experiencing only a 2% gain in the past week and a 10% decrease in the last 30 days. As of the time of writing, Dogecoin trades at $0.0732, according to CryptoSlate’s data.