On May 27, the number of daily transactions in the blockchain of meme cryptocurrency Dogecoin (DOGE) set a new record at 2.08 million, according to BitInfoCharts.
For comparison, the Bitcoin network recorded 471,488 transactions, while Ethereum had 982,620.
Activity among meme-cryptocurrency enthusiasts, according to several experts, is linked to the growing popularity of tokens of the DRC-20 standard, which enables new digital assets to be created on top of the blockchain.
On May 13, Dogecoin also surpassed Bitcoin and Litecoin in daily transactions.
A longtime supporter of the meme cryptocurrency, Elon Musk recently again described it as the best among digital assets. However the billionaire urged not to make “too big bets” on Dogecoin.
Forbes columnist Pi Rizzo noted that since roughly two years ago when Musk first backed the meme cryptocurrency, its price relative to Bitcoin has fallen by 75%.
✨ Elon backing Dogecoin over #Bitcoin, exactly 2 years ago. DOGE is down 75% vs BTC ever since ? pic.twitter.com/OcsLKg7sgH
— RIZZO (@pete_rizzo_) May 26, 2023
Record activity in the network did not have a noticeable impact on DOGE’s price — over the week the coin fell 0.9% (CoinGecko). Market capitalization rose by 2.1% over the period, while Bitcoin added 4%.
Some analysts noted that the latest conspicuous price spike for the meme cryptocurrency coincided with Musk’s purchase of Twitter in October 2022. Since then, price movements have not shown an uptrend.
?♀️? pic.twitter.com/0GpaouMiDh
— Just A Nobody ?? (@orionsquare) May 29, 2023
Meanwhile, investor The Coach, who goes by that handle on Twitter, argued that a likely drop to $0.042 could be an “excellent buying opportunity.” But he cautioned that one should watch for a Bitcoin bullish reversal, he said.
In February, Dogecoin’s price reacted to a surge in response to a series of Musk tweets. The entrepreneur introduced his Shiba Inu dog named Floki as Twitter’s CEO and a new member of the company’s board.
In May, Binance chief Changpeng Zhao said that the billionaire had “extended the life” of the meme cryptocurrency, which could have disappeared long ago.