Dogecoin’s rising transactions are connected to this experiment
Journalist
Posted:
- Months after helping Dogecoin surpass Bitcoin transactions, Doginals are back again.
- DOGE may reverse to the upside if demand reappears.
Dogecoin’s [DOGE] co-founder Billy Markus confirmed that the jump in transactions on the blockchain was because of an increase in meme coin trading and Doginals’ activity.
Markus, who answers by the nickname “Shibetoshi Nakamoto,” revealed this in response to a community member who was curious about the reason behind the hike.
ordinals and shitcoins using doge blockchain
— Shibetoshi Nakamoto (@BillyM2k) November 24, 2023
The Doginals experiment first appeared in May. At that time, the developers wanted it to be a replica of Bitcoin Ordinals. Interestingly, the experiment was successful. So, users were able to inscribe images, and texts on the Dogecoin blockchain.
By copying the Ordinals model again, some members of the DOGE community introduced DRC-20. Unlike Doginals, DRC-20 tokens can be traded as normal cryptocurrencies. These were the “shitcoins” Markus was referring to in his post.
Maybe they are “shitcoins” in the end
Out of genuine concern, AMBCrypto checked if these tokens were bringing in good returns for the traders. According to our assessment of Coinranking’s data, a whopping 71% of DRC-20 tokens have brought in losses for traders in the last 24 hours.
Only 29% of these meme coins gained within the same period. Further evaluation of the Dogecoin ecosystem showed that the unimpressive performance of these tokens has caused the trading volume to sink.
Source: Coinranking
The decrease in the trading volume indicated that demand for DRC-20 tokens was falling at press time. Should the demand continue to shrink, the prices of these tokens might continue to decrease.
Dogecoin is in pole position to recover
Likewise, the overall volume on the Dogecoin network has fallen. According to Santiment, after rising to 829.83 million on the 22nd of November, DOGE’s volume went to 249.63 million at press time. The cryptocurrency’s price changed hands at $0.078.
DOGE’s value represented a 1.03% decrease in the last seven days. Should the volume continue to decrease, and the price follows, then DOGE’s direction may reverse upwards. However, the potential recovery may also depend on the demand for the coin.
Source: Santiment
If demand spikes, there is a chance for DOGE to reach $0.1. Dogecoin’s potential to increase could also be found in its number of holders.
On numerous occasions, AMBCrypto had reported how the number of DOGE holders, when compared with Shiba Inu [SHIB] remained almost the same.
Read Dogecoin’s [DOGE] Price Prediction 2023-2024
But at the time of writing, the total number of DOGE holders had increased to 5.31 million. This increase was due to the over 50,000 addresses that bought the coin since the 24th of November.
Source: Santiment
Like the holder count, the Active Addresses 24h metric also climbed, confirming the increase in interaction. If there is a repeat of these numbers in the coming week, then DOGE might be ready for another rally.
