The cryptocurrency Dogecoin, which was inspired by memes, has lately experienced a significant increase in network activity. Daily transactions have surpassed both Bitcoin and Litecoin and reached an all-time high (ATH) of 650,000.
This unexpected boost in activity is linked to a rise in demand for DRC20 tokens, a brand-new kind of digital asset, which are being minted on the Dogecoin network.
Patrick Lodder, the creator of Dogecoin, had previously made a suggestion that network activity will significantly rise. Even while the increase was notable at the time, it was nothing like as high as it is now.
Many in the cryptocurrency industry view this surge as a chance to evaluate Dogecoin’s scalability. One user with the handle @SK_R402 added that they intended to build up their node, a component of the network that maintains a version of the blockchain, and urged that the emphasis should be on the currency’s potential for regular transactions.
Thoughts have been expressed that the increased activity might potentially clog the Dogecoin network. Mishaboar, a well-known figure in the Dogecoin community, recognised these worries and recommended that, in order to avoid cluttering the main network, such activities should best be handled through separate Layer-2 solutions.
Many users are nonetheless upbeat, noting that if Dogecoin is to become a widely used worldwide currency, this increase in transactions may be a precursor of things to come.
