Dogecoin’s daily transaction volume rose tenfold from the average daily earlier this week to set a lifetime peak following the launch of a new mechanism that now allows the issuance of tokens on the Dogecoin blockchain.
The network saw over 645,000 transactions on Sunday, data from BitInfoCharts shows, briefly crossing both Bitcoin and Litecoin transactions that day before falling back to previous levels as of Wednesday.
Dogecoin transactions bumped over Bitcoin briefly earlier this week. (BitInfoCharts)
Historical data shows Dogecoin typically sees around 20,000 daily transactions However, the introduction of the DRC-20 token standard on May 9 has led to an immediate increase in network activity.
These standards allow 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.
DRC-20 Attracts Criticism
Despite the bump in transactions, not everyone is amused with the DRC-20 token deployment. Critics point out that DRC-20 may lead to network congestion and that it moves away from dogecoin’s aim of being used as an everyday currency.
“The DRC-20 Dogecoin community should stop this shameless hype,” wrote one Dogecoin community member on Twitter. “Everyone should probably focus on the transactional currency use case,” said another.
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 – damping adoption plans.
Bitcoin’s own ‘Bitcoin Request for Comment’ (BRC-20) standard went live in March last month, opening the floodgates to two-year high fees as a Bitcoin-based meme coin trading frenzy gained notoriety on the network.