After a new mechanism was introduced to allow the issuance of tokens on the Dogecoin blockchain, the daily transaction volume of Dogecoin increased by ten times the average daily volume earlier this week, reaching an all-time high.
According to data from BitInfoCharts, on Sunday the network recorded more than 645,000 transactions, surpassing the number of transactions made on both itcoin">Bitcoin and Litecoin that day. However, by Wednesday, the transaction volume had returned to its previous levels.
Based on past records, Dogecoin usually experiences approximately 20,000 transactions per day. However, the recent adoption of the DRC-20 token standard on May 9 has resulted in an instantaneous boost in network activity.
The introduction of DRC-20 tokens has garnered criticism despite the increase in transactions. Critics argue that it could cause network congestion and goes against the original purpose of Dogecoin as an everyday currency. Some members of the Dogecoin community have expressed their disapproval on Twitter, calling for a focus on the currency’s transactional use case. These concerns are valid as high fees and network congestion could make the network costly and slow for regular users, which may hinder adoption plans.
In March of last month, itcoin">Bitcoin’s BRC-20 standard was launched, which coincided with a surge in fees to a two-year high. This was due to the popularity of meme coin trading on the itcoin">Bitcoin network.
