HomeCryptoDogecoin crypto reaches new all-time high in daily transactions: over 719,000

Dogecoin crypto reaches new all-time high in daily transactions: over 719,000

Crypto news: Daily transactions on the Dogecoin network have reached a record high, rising to over 719,000. 

The increase is credited to users generating meme tokens using frameworks inspired by Ordinals. 

Below are all the details. 

Dogecoin crypto surpasses Bitcoin in daily transactions

As anticipated, the Dogecoin network recently saw a sharp increase in daily transactions, reaching a new high of over 719,000 on Tuesday. 

This represents a record in Dogecoin’s daily transaction volume, surpassing even that of the Bitcoin network, according to data from BitInfoCharts

The increase is largely attributed to users creating meme tokens using frameworks influenced by the Ordinals protocol on Bitcoin, aka “Doginals.” 

Dogecoin-based meme tokens are based on what is called the DRC-20 token standard, which emulates the functionality of the BRC-20 token standard on Bitcoin used to mint fungible tokens. 

This system allows users to embed data in shibes, the smallest unit of Dogecoin, thus enabling the tracking of fungible and non-fungible tokens within the network. 

The system is open to anyone, and there is an apparent rush among Dogecoin users and developers to mint such tokens. In fact, the development triggered a significant increase in user activity that began last week, as noted by members of the Dogecoin community on Twitter

Uncertainty about meme tokens continues to prevail, why? 

Despite this, the short-term future of meme tokens remains clouded by uncertainty.

Unlike their BRC-20 equivalents on Bitcoin Ordinals, which boast a market capitalization in excess of $400 million, meme tokens on the Dogecoin network currently lack a liquid market and a well-defined value proposition.

bitcoin dogecoin transactions
Transaction graph on the Bitcoin and Dogecoin blockchain

In any case, there are several methods for minting such tokens. One popular strategy involves DPal, a browser extension wallet for Dogecoin. Numerous users appear to use this wallet for token minting. 

However, this project does not offer an “indexer” solution, making it difficult for users to determine the number of tokens issued and complicating the trading markets that can be built around these tokens.

Adding competition to the mix is the token minting service drc-20.org, a website of a project called Doge Labs that allows users to mint tokens on Dogecoin as well. 

Unlike DPal, Doge Labs claims to be the first membership service that can index DRC-20 tokens. This feature claims to provide a network-wide database and registry of these tokens which is necessary to enable the exchange of these meme tokens. 

Focus on the price of the Dogecoin (DOGE) crypto

While some meme coins have posted huge gains in recent weeks, Dogecoin is still looking for a solid level to reverse the trend, as it has yet to see a big rally since it started falling last month. 

In fact, soon after it broke an important resistance line on 3 April, it met resistance and sharply rejected the $0.105 level. This rejection led to weeks of bearish action and the price to a low of $0.692 this week, testing the resistance line again as support. 

However, Dogecoin is recording a new decline in the 4-hour period and may see another one soon. However, if the asset continues to find support above this resistance line, the price is likely to bounce higher. 

For now, there is not much to look forward to because of the current calm throughout the market. With the current price set on the daily chart, an increase in volatility will determine whether the major meme currency recovers or extends the decline.

In conclusion, if DOGE regains momentum from the current trading level, we can expect a quick push above a nearby resistance level of $0.0727. Pushing above that price level should allow buying at $0.079 and $0.085. 

However, a continuation of bearish action could cause the price to slip to the $0.068 support level. Below the level is the March low of $0.0627 before reaching $0.06, a six-month low.

grafico prezzo crypto dogecoin
Daily chart of the price of Dogecoin (DOGE/USDT)

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.