Meme coins launching on the king of meme coins: it has become the new reality within the world of crypto. Dogecoin (DOGE) is the number one memecoin by market cap and is currently chasing a similar development to Bitcoin (BTC). In January, Ordinals was introduced to the Bitcoin network enabling inscriptions on the blockchain. With this new technology it is possible to create non-fungible tokens (NFTs) and recently fungible tokens on the king of blockchains. The latter was made possible in early March by the arrival of the BRC-20 token standard and Dogecoin developers seem to have been inspired by this.
Dogecoin token standard
On May 9, the DRC-20 token standard was brought to life, allowing users to create and trade tokens on Dogecoin’s network. The framework that makes this possible is inspired by the Ordinals protocol and is also called ‘Doginals’.
It therefore works the same as Bitcoin: users can carry data in the smallest unit of DOGE, allowing NFTs and fungible tokens to be created and traded.
The development has led to a significant increase in user activity. We have all seen how explosive the growth of tokens on the Bitcoin network has been. Almost 25,000 tokens are already there launched and the market capitalization of all BRC-20 tokens is currently just under $500 million.
However, not everyone welcomes the new token standard with open arms: critics point out that DRC-20 can lead to network congestion and point to the fact that it deviates from the goal of using DOGE as everyday currency. In this sense, the arguments are the same as those of Ordinals’ critics. The network congestion on Bitcoin pushed transaction costs to new heights, which is obviously anything but desirable for the user.
DOGE transactions hit new record
Out data from BitInfoCharts shows that the number of DOGE transactions had risen to about 720,000 on Tuesday. It even managed to record more transactions than Bitcoin and Litcoin (LTC). This is a huge increase compared to what Dogecoin is used to: normally the network processes around 20,000 transactions per day.
