In the last month, Dogecoin (DOGE) has observed a notable upswing in transactions surpassing the $100,000 mark, coinciding with a substantial surge in the price of this meme-based cryptocurrency.
The abrupt increase in both transaction volume and price suggests a heightened level of interest in Dogecoin, particularly from major financial entities recognized as “whales” and institutional investors.
Billy Markus, an IT engineer, co-created the prominent meme-based cryptocurrency alongside Jackson Palmer in 2013. Originally conceived as a satirical imitation of Bitcoin, Markus has recently offered his perspective on the significant surge in daily DOGE transactions, which surpassed 1 million earlier this week.
Dogecoin Transactions Grow
The increase in transactions on the Dogecoin blockchain has been formally ascribed to an upsurge in trading of meme coins and an escalation in activity associated with Doginals, as verified by Markus, known as Shibetoshi Nakamoto on X.
In response to a community member’s concern over the abrupt surge, Markus provided clarification that the upswing in blockchain transactions is causally connected to the heightened trading activity of meme coins and the active participation of Doginals inside the Dogecoin ecosystem.
Dogecoin transactions are going parabolic
Does anyone know why? pic.twitter.com/qBRQGiLhOp
— 💸💸💸 (@itsALLrisky) November 24, 2023
The crypto market cap at $1.38 trillion per TradingView.com
#Dogecoin | There’s a notable surge in $DOGE transactions exceeding $100,000 in the past month, consistently hitting new highs.
This uptick suggests increased interest in #DOGE from institutional players and whales, potentially gearing up for a significant price spike. pic.twitter.com/UpxVkfu9hW
— Ali (@ali_charts) November 23, 2023
Meanwhile, the data presented by Blockchair substantiates the record achieved by DOGE. Markus suggested that the primary rationale behind this phenomenon is the active utilization of the Dogecoin blockchain for the purpose of transferring Ordinals and low-value cryptocurrencies.
Dogecoin transaction count chart. Source: Blockchair
Dogecoin transaction count chart. Source: BlockchairThe Doginals experiment was initially introduced in the month of May. During that period, the developers expressed their intention for it to function as a faithful replication of Bitcoin Ordinals. The experiment yielded successful results, which is of notable interest. Users possessed the capability to engrave both images and textual content onto the Dogecoin blockchain.
Doginals refer to the constituent components of Dogecoin, wherein every element represents a distinct entity known as a “Shibe” within the underlying Dogecoin network. These components are further distinguished by the inclusion of additional data, such as textual information or visual imagery.
Image: Doginals FEPE, Medium.
Image: Doginals FEPE, Medium.Overview Of The Doginals DRC20 Standard
The recently introduced Doginals DRC20 standard enables Dogecoin nodes to encode data onto individual Shibe entities, resulting in the creation of a Doginal. The term “Shibe” has a parallelism with the Bitcoin counterparts “Satoshi” or “Sat”.
In contrast to Doginals, DRC-20 tokens possess the capability to be exchanged in a manner consistent with conventional cryptocurrencies. The aforementioned S-coins were the subject of Markus’ discourse in his online publication.
The initial development of enabling non-fungible tokens (NFTs) and tokens through the ERC-21 and ERC-20 standards by Ethereum was a significant milestone in the blockchain industry.
This innovative capability has since been embraced by other blockchain networks, such as Solana.
At the time of writing, DOGE was trading at $0.080, up 2.8% in the last day, and gained 0.2% in the last seven days, data from Coingecko shows.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Pexels
