The Dogecoin Surge: Unveiling The Catalyst Behind Rising Transactions

Christian Encila

1 year ago

3 mins read

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In the last month, Dogecoin (DOGE) has observed a notable upswing in transactions surpassing the $100,000 mark, coinciding with a substantial surge in the price of this meme-based cryptocurrency.

The abrupt increase in both transaction volume and price suggests a heightened level of interest in Dogecoin, particularly from major financial entities recognized as “whales” and institutional investors.

Billy Markus, an IT engineer, co-created the prominent meme-based cryptocurrency alongside Jackson Palmer in 2013. Originally conceived as a satirical imitation of Bitcoin, Markus has recently offered his perspective on the significant surge in daily DOGE transactions, which surpassed 1 million earlier this week.

Dogecoin Transactions Grow

The increase in transactions on the Dogecoin blockchain has been formally ascribed to an upsurge in trading of meme coins and an escalation in activity associated with Doginals, as verified by Markus, known as Shibetoshi Nakamoto on X.

In response to a community member’s concern over the abrupt surge, Markus provided clarification that the upswing in blockchain transactions is causally connected to the heightened trading activity of meme coins and the active participation of Doginals inside the Dogecoin ecosystem.

Dogecoin transactions are going parabolic

Does anyone know why? pic.twitter.com/qBRQGiLhOp

— 💸💸💸 (@itsALLrisky) November 24, 2023

The crypto market cap at $1.38 trillion per TradingView.com

#Dogecoin | There’s a notable surge in $DOGE transactions exceeding $100,000 in the past month, consistently hitting new highs.

This uptick suggests increased interest in #DOGE from institutional players and whales, potentially gearing up for a significant price spike. pic.twitter.com/UpxVkfu9hW

— Ali (@ali_charts) November 23, 2023

Meanwhile, the data presented by Blockchair substantiates the record achieved by DOGE. Markus suggested that the primary rationale behind this phenomenon is the active utilization of the Dogecoin blockchain for the purpose of transferring Ordinals and low-value cryptocurrencies.

Dogecoin transaction count chart. Source: Blockchair

The Doginals experiment was initially introduced in the month of May. During that period, the developers expressed their intention for it to function as a faithful replication of Bitcoin Ordinals. The experiment yielded successful results, which is of notable interest. Users possessed the capability to engrave both images and textual content onto the Dogecoin blockchain.

Doginals refer to the constituent components of Dogecoin, wherein every element represents a distinct entity known as a “Shibe” within the underlying Dogecoin network. These components are further distinguished by the inclusion of additional data, such as textual information or visual imagery.

Image: Doginals FEPE, Medium.

Overview Of The Doginals DRC20 Standard

The recently introduced Doginals DRC20 standard enables Dogecoin nodes to encode data onto individual Shibe entities, resulting in the creation of a Doginal. The term “Shibe” has a parallelism with the Bitcoin counterparts “Satoshi” or “Sat”.

In contrast to Doginals, DRC-20 tokens possess the capability to be exchanged in a manner consistent with conventional cryptocurrencies. The aforementioned S-coins were the subject of Markus’ discourse in his online publication.

The initial development of enabling non-fungible tokens (NFTs) and tokens through the ERC-21 and ERC-20 standards by Ethereum was a significant milestone in the blockchain industry.

This innovative capability has since been embraced by other blockchain networks, such as Solana.

At the time of writing, DOGE was trading at $0.080, up 2.8% in the last day, and gained 0.2% in the last seven days, data from Coingecko shows.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Pexels

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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