New Trend Overwhelming the Network
The cryptocurrency industry is currently witnessing a surge of new tokens entering the market. Among them, BRC-20, DRC-20, and LTC-20 tokens have garnered significant attention. While some believe that it’s a fad, a few others have been criticizing them for congestion the network. However, these tokens have also caused disruptions within the ecosystem. Notably, Dogecoin and Litecoin networks have experienced a noticeable rise in activity as a result.
The transaction count of Dogecoin has been consistently increasing, reaching a peak of 1.3 million transactions on the network. This surge indicated a substantial rise in the number of transactions being processed within the Dogecoin ecosystem.
Additionally, the transaction transfer count also spiked over the last week. While all of this indicated raised activity in the DOGE ecosystem, it wasn’t perceived to be positive. Several pointed out how this increase was due to the introduction of DRC-20 tokens on May 9. The meme coin network even surpassed Bitcoin recently with regard to daily transactions.
Dogecoin community wary
Earlier today, a member of the Dogecoin community named Mishaboar expressed concern on Twitter about the nearing full capacity of Dogecoin blocks. This observation suggested that the blocks in the Dogecoin network were approaching their maximum limit. This could potentially lead to congestion and slower transaction processing times.
He pointed out that the advent of DRC-20 tokens is causing the strain. He added,
“It is just that Dogecoin allows for a higher number of transactions per minute before high fees kick in – they are abusing the network now so that they can mint millions of wannabe (!!!) tokens basically for free.”
The network congestion has been alleviated to some extent. However, there is still a looming threat of rising fees and congestion in the Dogecoin network. This situation is primarily attributed to the growing interest in DRC-20 tokens. Individuals who missed out on the earlier hype around BRC-20 tokens are now jumping on the bandwagon of DRC-20 tokens. However, they were contributing to the ongoing fervor and potential strain on the network.
Is this a matter of concern?
According to Partick Lodder, a Dogecoin core developer, Doginals and DRC-20 tokens wouldn’t be here too long. He said,
“Something like this cannot become a real ‘feature’ because it has not had enough thought given to it. [The] sustained and growing pressure on Dogecoin will cause this to die off quickly.”
Therefore, the risk is limited. Mishaboar even explained that node operators and miners entail settings that could limit these transactions. This could in turn aid in easing congestion.
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