Title: Dogecoin Co-Founder Reveals the Cause of Recent Blockchain Activity
Subheading: The Return of the Doginals
The co-founder of Dogecoin, Billy Markus, has confirmed that the recent surge in blockchain transactions is due to an increase in meme coin trading and the return of the Doginals.
Markus, who goes by the nickname “Shibetoshi Nakamoto,” shared this information in response to a community member’s inquiry about the sudden increase in activity.
The Doginals experiment first appeared in May and aimed to replicate the success of bitcoin Ordinals. This unique experiment allowed users to inscribe images and texts on the Dogecoin blockchain. The initiative was a success and led to a surge in activity.
Introducing DRC-20 Tokens
To build on the success of Doginals, some members of the Doge community introduced DRC-20 tokens, which can be traded as normal cryptocurrencies. However, the co-founder referred to them as “shitcoins” in his post.
The Impact on Trading Volume
The introduction of these tokens has adversely affected the trading volume, with 71% of DRC-20 tokens yielding losses for traders. This decrease in trading volume has led to a drop in demand for these tokens, potentially causing a further decrease in their prices.
A Potential Recovery for Dogecoin
On the other hand, the overall trading volume on the Dogecoin network has also fallen, prompting a 1.03% decrease in the price of Doge in the last seven days. The potential for recovery will depend on the demand for the coin, and if demand picks up, there is a possibility of Doge reaching $0.1.
A Positive Increase in Holders and Active Addresses
Despite the challenges, the total number of Doge holders has increased to 5.31 million, with over 50,000 new addresses buying the coin since November 24th. Additionally, the Active Addresses 24h metric has also increased, signaling a rise in interaction on the network.
Overall, the recent surge in blockchain activity and the return of the Doginals present both challenges and opportunities for Dogecoin. With the potential for another rally in the coming weeks, the future of Doge remains uncertain but promising.
### News source: eng.ambcrypto.com