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News/Dogecoin's Triumph: Outperforming Bitcoin, Ethereum, Litecoin in Transactions

Dogecoin's Triumph: Outperforming Bitcoin, Ethereum, Litecoin in Transactions

Jun 5 2023

last year3 minutes read

Dogecoin Surpasses Bitcoin, Ethereum, and Litecoin in Daily Transactions

Written by Van

In a surprising turn of events, Dogecoin, the once-humble meme-based cryptocurrency, has taken the lead in daily transactions, outperforming giants like BitcoinEthereum, and Litecoin. This surge in Dogecoin's network activity has captured the attention of the crypto community and raised both excitement and concerns.


The Rise of Dogecoin's Network Activity: How Elon Musk's Favourite Cryptocurrency is Taking Over

On May 17, Dogecoin transactions first exceeded Bitcoin, Ethereum, and Litecoin, signaling a significant landmark for the digital coin, according to BitInfoCharts. Following this breakthrough, the Dogecoin blockchain has persistently stayed busy, processing millions of transactions.

Between May 22 and 28, Dogecoin accomplished over 9 million transactions, overshadowing Ethereum's rough 6 million transactions and Bitcoin's 3.3 million transactions. The network activity continued to soar, reaching a ground-breaking milestone of processing over 2 million transactions in one day, on May 27, 2023. This unparalleled level of daily transaction volume cemented Dogecoin's position as a formidable contender in the crypto universe.

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Dogecoin transactions outperform others. Source: BitInfoCharts.

Unraveling the Reasons Behind Dogecoin's Transaction Explosion

One of the vital elements fueling Dogecoin's transaction volume growth is the advent of DRC-20 tokens. These tokens enable the creation and trading of assets on the Dogecoin blockchain, broadening its utility and allure to a wider user base. As of June 5, 2023, there have been 3,153 DRC-20 tokens born, as per data from Doge Labs.

This innovation has drawn numerous holders, culminating in a substantial rise in on-chain transactions. The opportunity to mint these tokens through multiple transactions has added to the increase in transactions executed on the Dogecoin network.

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How to mint DRC-20 tokens. Source: Doge Labs.

Dogecoin's Future: Opportunities and Challenges Ahead

While the spike in network activity has invigorated the Dogecoin community, it has also instigated concerns. There are fears that the escalated transaction volume could result in network congestion and impede Dogecoin's primary ambition of facilitating efficient, low-cost, and accessible everyday transactions.

Moreover, Dogecoin's sharp increase in transaction volume has alerted regulators and investors, with some casting doubt on the sustainability of this upward trajectory. This leads to queries regarding Dogecoin's long-term transaction capabilities and its potential to maintain this level of activity.


Elon Musk, Dogecoin, and the Ripple Effect of Controversy

The recent surge in Dogecoin's transaction volume hasn't been without its share of disputes. On June 2, investors accused Tesla CEO Elon Musk, famously associated with Dogecoin, of insider trading and manipulating the cryptocurrency's price. These allegations originated from a group of crypto investors who revised a pre-existing class-action lawsuit against Musk.

The investors argue that Musk has involved himself in market manipulation, insider trading, and fraud to boost his own and his companies' reputations. They assert that Musk intentionally escalated Dogecoin's price through tweets, publicity stunts, and selling large amounts of the cryptocurrency from his personal wallet.

One case the investors pointed out is Musk selling about $124 million worth of Dogecoin in April after switching his Twitter logo to Dogecoin's Shiba Inu dog logo, which resulted in a 30% price hike. The legality of Musk replacing Twitter's bird logo with Dogecoin's logo is presently under scrutiny. Musk, who is ranked as the second-richest person in the world by Forbes magazine, has been accused by investors of intentionally causing Dogecoin's price to soar by over 36,000% in two years and subsequently allowing it to plummet.


Musk's Legal Battles and the Impact on Dogecoin's Market Value

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The allegations against Musk form part of a proposed third amended complaint in an ongoing lawsuit. Musk and Tesla had previously sought the dismissal of the second amended complaint, describing it as fictional, and opposed any further amendments.

The investors challenge Musk's defense of promoting Dogecoin as a fun, non-serious asset, considering it as not credible. They insist that Musk deliberately manipulated Dogecoin's price and subsequently allowed it to crash, causing financial damage to many investors.

In the midst of these legal troubles, Dogecoin's price has seen substantial fluctuations. Initially, the price surged after Musk put Dogecoin's logo on the Twitter home page, but it later entered a distribution phase, nullifying the initial pump.

As the lawsuit unfolds, the effect of the allegations against Musk on Dogecoin's perception and future growth remains to be seen.


Quick Facts: Elon Musk's Influence on Dogecoin

  • Elon Musk has been a vocal supporter of Dogecoin, often discussing it in his tweets and interviews. He stated that Dogecoin is better suited for transactions than Bitcoin due to its higher transaction flow potential, lower cost per transaction, and faster transaction times.
  • Musk's tweets have been associated with significant price movements of Dogecoin. Despite denying that his tweets are a factor in price swings, the Dogecoin price has repeatedly been boosted following Musk's tweets.
  • Despite a drop in value since its peak in May 2021, Dogecoin has seen a significant increase in its value over the past years, largely helped by support from Musk and other high-profile investors and influencers.
  • Musk has encouraged Dogecoin developers to improve the cryptocurrency with faster transaction times and lower fees, aiming to "beat Bitcoin hands down."
  • More interesting facts about Elon Musk’s love for Dogecoin can be found here

Dogecoin Transactions: An Analysis Amid Investor Uncertainty

Despite the ongoing controversy, Dogecoin's transaction figures have maintained their impressive performance. As of June 5, Dogecoin transactions are 5.1 times that of Bitcoin, 1.9 times that of Ethereum, and 12.8 times that of Litecoin.

However, it's noteworthy that the transaction numbers have started to decline recently, reflecting investor uncertainty due to Elon Musk's legal predicament. The outcome of the lawsuit and any developments regarding Musk's alleged interference with Dogecoin's price fluctuations could drastically affect the cryptocurrency's future path.


FAQ about Dogecoin's Rise and Elon Musk's Involvement

Q: How has Elon Musk been involved with Dogecoin?

A: Elon Musk, CEO of Tesla, has played a substantial role in Dogecoin's journey. His tweets and participation in publicity stunts, coupled with the significant selling of Dogecoin from his personal wallet, have made headlines.

Q: How does Dogecoin's transaction volume stack up against other cryptocurrencies?

A: Dogecoin's transaction volume has recently outstripped that of Bitcoin, Ethereum, and Litecoin, making it a leading cryptocurrency in terms of daily transactions.

Q: How much Doge does Elon Musk own, and how does it influence Dogecoin's future?

A: Elon Musk's exact Dogecoin holdings remain undisclosed. Nonetheless, according to investors, Musk's sale of approximately $124 million worth of Dogecoin in April, occurred after he replaced Twitter's blue bird logo with Dogecoin's Shiba Inu dog logo.

Q: What's the best place to store my Dogecoin?

A: Various digital wallets support Dogecoin. Renowned options include hardware wallets like SafePal and software wallets like Exodus.

Q: Can you elaborate on the lawsuit involving Elon Musk and Dogecoin?

A: Elon Musk faces accusations of market manipulation, insider trading, and fraud linked to Dogecoin's price by a group of crypto investors. This class-action lawsuit is ongoing, and its outcome could significantly affect both Dogecoin and Musk's reputation.


Conclusion: Elon Musk, Dogecoin, and What Lies Ahead

As Dogecoin keeps making headlines with its impressive transaction numbers, Elon Musk's involvement adds a layer of mystery and uncertainty. Crypto enthusiasts and investors are on the edge of their seats, watching for the lawsuit's resolution and the future course of this much-loved meme-inspired cryptocurrency.

This article has been refined and enhanced by ChatGPT.

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