dogecoin ‘s daily transactions increased by 5,500% in about a week, reaching 1.12 million on May 17. In doing so, the meme coin eclipsed Bitcoin’s daily transaction count. On the same day, Bitcoin’s daily transaction count was 576,000.
The on-chain activity in the Dogecoin ecosystem over the past week indicates that the meme coin, which has lost some of its popularity to new projects in the industry, is starting to resurrect. PEPE and Milady in the last few weeks meme coin took the market by storm. Therefore, it diverted attention away from DOGE and other popular meme coins.
DOGE’s comeback is tied to the NFT project Doginals in its ecosystem. It is a product of the newly created DRC-20 token standard on the Dogecoin network. The token standard allows users to develop decentralized exchangeable tokens on the Dogecoin network.
On-chain data shows a growing user interest in newly created DRC-20 tokens. This explains the explosive rise in DOGE’s daily trading. The popularity of BRC-20 seems to be declining, while the popularity of DRC-20 tokens is growing.
BRC-20 is an experimental token standard for the Bitcoin network that allows users to circumvent Bitcoin’s programmability limitations. It allows them to create semi-exchangeable tokens using sequential tokens.
DOGE’s DRC-20 uses technology similar to BRC-20 to create a class of tokens that some of the Dogecoin community refer to as Doginals. However, it also receives support and infrastructure support from other blockchain projects. Hence, its growing popularity is also reflected in the rapidly increasing number of daily transactions.
Crypto users expect Doginals interest to continue for some time, given the large population of the Dogecoin community. The only setback he will face is the waning interest in NFTs, which has been the case since the early days of the bear market.
The average weekly volume of NFT transactions is down. It has dropped from $700 million to less than $180 million in the last three months.