- Daily transactions on Dogecoin reached a record high following the launch DRC-20 token standard.
- However, the DOGE price continued to crab.
NEW DELHI (CoinChapter.com) — Meme token Dogecoin has attracted increased user activity following the launch of its DRC-20 token standard. Furthermore, transactional volumes on Dogecoin briefly overtook Litecoin (LTC) and Bitcoin (BTC) recently.
The meme token launched the DRC-20 protocol on May 9. However, the success of the Ordinals Protocol on Bitcoin likely prompted Dogecoin to come up with its version.
Daily transactions on Dogecoin spiked by 1,714% since May 9 to reach an all-time high of nearly 720,000 transactions on May 16. Before the DRC-20 launch, transactions on the meme coin’s blockchain were capped at around 30,000 daily.
DRC-20: Doginals, Not Ordinals
Like BRC-20, the DRC-20 will allow users to inscribe digital artifacts on the DOGE’s smallest units, called Elons. One DOGE is equal to 100 million elons. Moreover, the inscription can contain “arbitrary content” without a sidechain or a separate token.
Elons in the Dogecoin ecosystem are identifiable via a cardinal number system, with every Elon numbered serially in the order of its mining, beginning with 0 (zero).
Dogecoin developers stated that users can secure these Cardinal elons using “single-signature wallets, multi-signature wallets, time-locked, and height-locked in all the usual ways.“
Inscribed elons would help create Dogecoin-native NFTs.
Inscribed elons can then be transferred using dogecoin transactions, sent to dogecoin addresses, and held in dogecoin UTXOs. These transactions, addresses, and UTXOs are normal dogecoin transactions, addresses, and UTXOS in all respects
Dogecoin developers said in the announcement.
Despite the hype, not everyone seemed pleased with Dogecoin’s imitation of Bitcoin. Users took to Twitter to state that DOGE should try to “people’s currency to complete Satoru Nakamoto’s vision[sic]” and that the DRC-20 community needed to “stop this shameless hype.”
Additionally, another user alleged that DRC-20 was just a duplicate of Bitcoin’s BRC-20.
DOGE Price Not Excited About The DRC-20 Hype
Meanwhile, despite the increased activity on Dogecoin, DOGE price action remained sadly flat. A minor uptrend by bulls faced stiff resistance from the bears defending the 20-day EMA (red wave) resistance near $0.0755.
Long wicks on both ends of the daily candles indicate the DOGE community remains divided on DRC-20. However, if the hype around the Doginals grows, the FOMO might trickle down to DOGE prices, helping the memecoin break above immediate resistance to reach $0.0854 before retreating.
More likely, the EMA resistances would rebuff any attempts of an uptrend, forcing the DOGE price to drop to support near $0.069. If the immediate support fails, the Dogecoin token price might drop 17% to reach $0.0626 before recovering.
The relative strength index for DOGE remains neutral, with a value of 40.4 on the daily charts.
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