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Dogecoin (DOGE) Daily Transactions Skyrocket; What Is The Reason?

Dogecoin (DOGE) Daily Transactions Skyrocket; What Is The Reason?

Dogecoin (DOGE), Elon Musk’s favorite cryptocurrency has witnessed a massive surge in activity, with daily transactions reaching an all-time high (ATH) of 650,000, outpacing Bitcoin (BTC).

According to experts, the recent surge is likely due to an increased interest in minting DRC20 tokens, a new type of digital asset, on the Dogecoin network. On May 15, Mishaboar, a prominent figure in the Dogecoin community took to Twitter to reveal the exponential surge in daily transactions on the DOGE network. Many in the crypto community see this spike as an opportunity to test Dogecoin’s scalability.

DOGE Price Shoots Up

One user, going by the handle @SK_R402, suggested the focus should be on the currency’s potential for everyday transactions, adding that they planned to start up their node, a part of the network that maintains a version of the blockchain. This comes shortly after Dogecoin developer Patrick Lodder hinted at a significant increase in network activity in recent days. Meanwhile, another user pointed out the surge is because of DOGE being moved around through lots of wallets.

The substantial increase in activity has also managed to propel Dogecoin prices. As per data from CoinMarketCap, DOGE is up 1.18% in the last 24 hours to trade at $0.073. However, the memecoin is still trading with cuts over the past seven days. The price of DOGE has been extremely sensitive ever since Tesla “technoking” Elon Musk took over Twitter.

In October, DOGE skyrocketed more than 170%, hitting a high of $0.1596 after Musk’s acquisition of the microblogging site. Recently, Dogecoin’s logo the “Shiba Inu dog” replaced Twitter’s blue bird as the social media platform’s logo triggering Dogecoin’s value. Musk has been responsible for pumping doge prices on several occasions by sharing various references and memes relating to the dog-themed cryptocurrency on his social media feed.

Dogecoin (DOGE) Daily Transactions Skyrocket; What Is The Reason?

Dogecoin Creates A New Fund To Bolster Network

It seems Dogecoin (DOGE) developers have been putting in fervent efforts to ramp up the entire network. In January 2023, the Dogecoin Foundation came forward with an announcement of a new fund to support the development of the Dogecoin platform throughout the year.

Furthermore, the Dogecoin core team also took up the task of creating and publishing blog posts that would revolve around the announcement of all possible ways in regard to the DOGE ecosystem via social media channels by the custodians.