Dogecoin hype: the number of transactions exceeds Bitcoin and Ethereum's
Introduced in January by Casey Rodarmor, the Ordinals protocol first made waves on the Bitcoin network. Now it's reached Dogecoin. The protocol allows users to number mined units (Satoshi for BTC or Elons for DOGE) and thus transfer various 'files' over the network. This can be digital items (similar to NFTs) or coins (similar to ERC-20). On the Dogecoin network, the newly appeared elements were dubbed 'doginals', and fungible coins were called DRC-20.
To assess the new protocol's impact, we'll take a look at the Bitcoin network, which saw its highest load in the past year. Digital items garnered the first wave of interest, although they were soon completely replaced by BRC-20 tokens. The hype was so intense that transactions with Ordinals reached 65% of the total amount on certain days.
Now, doginals are taking Dogecoin by storm. In just the past day, the number of transactions set a record, exceeding 1.1 million. The previous high of 200,000 was set in 2013.
Dogecoin users were the luckiest. They didn't run into higher fees due to the heightened demand for transactions. Dogecoin is 4.7 times faster than Bitcoin and can hit an average speed of up to 33 TPS, which means it can process nearly 3 million transactions per day. That's why even a 40-fold increase didn't overload the network.
The introduction of ordinals also had no effect on Dogecoin's price.
Doginals are exchanged due to the speculative interest of a narrow circle of crypto enthusiasts. What's more, the process itself remains inconvenient because of the lack of the same kind of services and applications that Ethereum or Solana boast. Traders hope that some of these quasi-coins or NFTs will achieve cult status in the future. However, in most cases, such expectations are met only with losses.
StormGain Analytical Group
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