- On-chain activity in the Dogecoin ecosystem suggests a resurgence for the meme coin’s popularity.
- DOGE’s bounce back connects with the NFT project in its ecosystem, Doginals.
Dogecoin’s daily transactions increased by 5,500% in about one week, reaching a whopping 1.12 million on May 17, 2023. In doing so, the flagship meme coin dwarfs Bitcoin’s number of daily transactions. On the same day, the number of Bitcoin’s daily transactions was 576,000.
Last week’s on-chain activity in the Dogecoin ecosystem suggests a resurgence for the meme coin after losing a chunk of its popularity to the new projects in the sector. PEPE and Milady took the meme coin market by storm in the past few weeks, moving attention away from DOGE and other popular meme coins.
DOGE’s bounce back connects with the NFT project in its ecosystem, Doginals. It is a product of the newly created DRC-20 token standard on the Dogecoin network. The token standard allows users to develop fungible tokens on the Dogecoin network in a decentralized manner.
On-chain data shows an increasing user interest in newly created DRC-20 tokens, which explains the explosive rise in DOGE’s daily transactions. Incidentally, DRC-20 tokens’ popularity is rising when that of BRC-20 appears to be fading away.
BRC-20 is an experimental token standard for the Bitcoin network that allows users to circumvent the programmability limitations of Bitcoin. It enables them to create semi-fungible tokens using ordinal inscriptions.
DOGE’s DRC-20 uses a technology similar to BRC-20 to create a class of tokens that a section of the Dogecoin community calls Doginals. However, it is receiving support and infrastructure backing from other blockchain projects. Hence, the growing popularity reflects in the skyrocketing number of daily transactions.
Crypto users expect the Doginals hype to last for a while, considering the large population of the Dogecoin community. The only setback it would face is the dwindling interest in NFTs, which has been the situation since the early days of the bear market.
The average weekly volume of NFT transactions has been on a decline. In the past three months, from over $700 million to under $180 million.