The cryptocurrency world witnessed a historic moment as Dogecoin(DOGE)’s daily transaction volume skyrocketed, briefly crossing Bitcoin (BTC) and Litecoin transactions. The reason behind this surge lies in the introduction of the DRC-20 token standard, which allows developers to issue tokens that take network fees in the form of Dogecoin. The DRC-20 token standard, introduced on May 9, has led to a massive increase in network activity. While this adds to the value proposition for Dogecoin, it also paves the way for potential decentralized finance (DeFi) services built on its blockchain.
Not everyone, however, is impressed with the DRC-20 token deployment. Critics argue that it may lead to network congestion, moving away from Dogecoin’s goal of being used as an everyday currency. These concerns of high fees and network congestion are valid, as they can make the network expensive and slow for regular users, dampening adoption plans.
This isn’t the first time a similar situation has occurred in the cryptocurrency industry. Bitcoin’s own BRC-20 standard went live in March last month. As a result, a Bitcoin-based meme coin trading frenzy gained notoriety on the network, leading to two-year high fees.
Proponents of the DRC-20 token standard believe it adds value to Dogecoin, creating a pathway for DeFi services. Building on this blockchain can increase its usage and expand opportunities for developers in the cryptocurrency world. However, detractors feel that focusing on making Dogecoin a transactional currency would be more in line with its original aim, rather than implementing this token standard.
While it’s yet to be seen if the DRC-20 token standard will eventually lead to a wider range of DeFi services or if the concerns related to network congestion and high fees will dampen its potential, it cannot be denied that Dogecoin’s ability to briefly surpass both Bitcoin and Litecoin transactions indicates a growing interest in the cryptocurrency.
In conclusion, the implementation of the DRC-20 token standard on Dogecoin represents a significant milestone. The surge in daily transactions has managed to grab the attention of crypto enthusiasts and has sparked a conversation about the future of blockchain technology. The debate remains on whether DeFi services or focusing on transactional currency use-cases are more important, but there is no doubt that this development has propelled Dogecoin to a new level of visibility and discussion.
Source: Coindesk
