Dogecoin has registered an unexpected transaction activity surge, with analysts and investors scrambling for explanations. After introducing DRC20 tokens, the digital currency has been witnessing a stunning leap in its daily transactions, shaking the foundations of the crypto world.
On May 27, 2023, this blockchain underdog exceeded all previous records, boasting an astonishing 2 million-plus transactions within 24 hours. This significant rise in activity dwarfs those of crypto giants Bitcoin and Ethereum, 400,000-532,000 and a million transactions, respectively. An event that has certainly turned heads in a sector dominated by more well-established coins.
Dubbed “Doginals,” these DRC20 tokens are reminiscent of Bitcoin’s BRC20 tokens and have catalyzed Dogecoin’s transaction growth. Due to a lack of an indexed structure akin to BRC20 tokens, ascertaining the value of DRC20s is currently a challenging endeavor.
Dogecoin daily transaction count via Blockchair
Dogecoin’s surging hashrate: A sign of things to come?
In addition to the robust transaction activity, the Dogecoin network has also experienced a noteworthy increase in its hashrate. However, this metric—a critical measure of a blockchain’s health and security—has climbed over 38% since early May, indicating a burgeoning network strength.
As of May 9, the Scrypt hashrate dedicated to Dogecoin stood at 638 terahash per second (TH/s). Yet, barely three weeks later, it has surged to a robust 885 TH/s—an impressive testament to Dogecoin’s growing clout and resiliency.
This striking surge in hashrate can be partly attributed to Dogecoin’s “merge mining” compatibility with Litecoin. This allows miners to secure both networks simultaneously, potentially increasing miner participation and, consequently, hashrate.
