Over the past month, Dogecoin (DOGE) has seen a notable uptick in transactions exceeding the $100,000 mark, coinciding with a substantial increase in the price of this meme-based cryptocurrency.
The sharp increase in both transaction volume and price suggests a higher level of interest in Dogecoin, particularly from major financial entities known as “whales” and institutional investors.
Billy Markus, an IT engineer, co-created the prominent meme-based cryptocurrency along with Jackson Palmer in 2013. Originally conceived as a satirical imitation of bitcoin, Markus has recently offered his perspective on the significant rise in daily DOGE transactions, which surpassed the million. earlier this week.
Dogecoin transactions grow
The increase in transactions on the Dogecoin blockchain has been formally attributed to an increase in meme coin trading 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 about the abrupt increase, Markus clarified that the increase in blockchain transactions is causally related to increased meme coin trading activity and Doginals’ active participation within 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 is a notable increase in $DOGE transactions exceeding $100,000 in the last month, constantly reaching new highs.
This rebound suggests greater interest in #DOGE from institutional players and whales, potentially preparing for a significant price increase. pic.twitter.com/UpxVkfu9hW
—Ali (@ali_charts) November 23, 2023
Meanwhile, data presented by Blockchair corroborates the record achieved by DOGE. Markus suggested that the main reason behind this phenomenon is the active utilization of the Dogecoin blockchain in order to transfer Ordinals and low-value cryptocurrencies.
Dogecoin transaction count chart. Source: Blockchair
The 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 replica of bitcoin Ordinals. The experiment yielded successful results, which is of notable interest. Users had the ability to record images and textual content on the Dogecoin blockchain.
Doginals refer to the constituent components of Dogecoin, with each element representing 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 images.
Image: Doginals FEPE, Medium.
Doginals DRC20 Standard Overview
The recently introduced Doginals DRC20 standard allows Dogecoin nodes to encode data into individual Shibe entities, resulting in the creation of a Doginal. The term “Shibe” has parallels with its bitcoin counterparts “Satoshi” or “Sat”.
Unlike Doginals, DRC-20 tokens have the ability to be exchanged consistently with mainstream cryptocurrencies. The aforementioned S-coins were the topic of Markus’ speech in his online post.
The initial development of enabling non-fungible tokens (NFTs) and tokens through the ERC-21 and ERC-20 standards by ethereum was a major milestone in the blockchain industry.
This innovative capability has since been adopted by other blockchain networks, such as Solana.
At the time of writing, DOGE was trading at $0.080, up 2.8% over the past day, and gained 0.2% over the past seven days, Coingecko data shows.
(The content on this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk.)
Featured image from Pexels
