The introduction of the DRC-20 token helped Dogecoin record the highest daily trading volume in history, surpassing Bitcoin and Litecoin.
DRC-20 token launched, Dogecoin records unprecedented transaction levels
Coupled with the popularity of the meme coin, the daily trading volume of Dogecoin (DOGE) has increased 10 times the average at the beginning of the week. This data helped the market-leading meme to set its highest record since launch, due to the impact of the announcement of the DRC-20 token.
Dogecoin recorded over 719,000 transactions on May 16. According to data from BitInfoCharts, the daily trading volume of Dogecoin has quickly surpassed that of both Bitcoin and Litecoin.
Dogecoin typically has around 20,000 daily transactions. However, the introduction of the DRC-20 token standard on May 9 led to a rapid increase in the network activity of the popular meme coin.
Dogecoin trading volume chart. (Source: BitInfoCharts)
The DRC-20 emulates the functions of the BRC-20 token standard on Bitcoin, which is used to mint fungible tokens. This standard allows users to embed data in a shibe, the smallest unit of Dogecoin, and allows simultaneous tracking of both fungible and non-fungible tokens in the network.
In addition, the DRC-20 token standard allows developers to issue tokens for network fees in the form of Dogecoin. The event boosted Dogecoin's value proposition and paved the way for potential decentralized financial (DeFi) services built on the blockchain.
DRC-20 became the focus of discussion of the meme coin community？
Despite the increase in Dogecoin's trading volume, the community is not entirely supportive of the implementation of the DRC-20 token. Analysts point out that DRC-20 could lead to network congestion and the deprecation of the token as a daily Dogecoin currency.
“The Dogecoin community should stop the shameful hype about DRC-20,” a member of the Dogecoin community posted on Twitter. “People should probably focus on the transaction currency use case,” another disagreed about the DRC-20 issuance.
High transaction fees and network congestion are legitimate concerns for any blockchain as they pose a great deal of detriment to users and affect day-to-day transactions.
Prior to that, Bitcoin's own BRC-20 token standard launched last March, opening the door for high fees in 2 years as the trend of trading in Bitcoin-based meme coins became popular and became a craze in the cryptocurrency market.