Dogecoin Hashrate Drops 34% In One Day, What’s Going On?
Dogecoin hashrate was on the rise over the last week due to the popularity of DRC-20 tokens. However, the network has taken a nosedive in terms of hashrate over the past day with a double-digit drop. So what could be driving this decline?
Investors Find Other Things To Occupy Their Time
Now, when the Ordinals and BRC-20 craze first began, investors flocked to the Bitcoin network which led to a surge in the number of transactions on the network. It wasn’t long until developers were moving this concept to the likes of Dogecoin and Litecoin, both of which operate similarly to the Bitcoin network.
From this, the DRC-20 tokens were born, allowing for the transfer of fungible tokens on the Dogecoin network just like the Ethereum ERC-20 standard. As their popularity grew, so did the number of transactions on the network. This report from NewsBTC shows that there was a 60x spike in the number of DOGE transactions in a 20-day period, thanks to DRC-20 tokens.
As expected, the spike in transactions also led to an increase in the hashrate of the network given the higher workload. According to data from CoinWarz, Dogecoin’s hashrate spiked to over 1 petahash per second (PH/s) on May 17 at the height of the euphoria. But as the hype dies down, the hashrate has returned to its previous levels.
Read More: https://bitcoinist.com/dogecoin-hashrate-drops-34-in-one-day/
Dogecoin hashrate was on the rise over the last week due to the popularity of DRC-20 tokens. However, the network has taken a nosedive in terms of hashrate over the past day with a double-digit drop. So what could be driving this decline?
Investors Find Other Things To Occupy Their Time
Now, when the Ordinals and BRC-20 craze first began, investors flocked to the Bitcoin network which led to a surge in the number of transactions on the network. It wasn’t long until developers were moving this concept to the likes of Dogecoin and Litecoin, both of which operate similarly to the Bitcoin network.
From this, the DRC-20 tokens were born, allowing for the transfer of fungible tokens on the Dogecoin network just like the Ethereum ERC-20 standard. As their popularity grew, so did the number of transactions on the network. This report from NewsBTC shows that there was a 60x spike in the number of DOGE transactions in a 20-day period, thanks to DRC-20 tokens.
As expected, the spike in transactions also led to an increase in the hashrate of the network given the higher workload. According to data from CoinWarz, Dogecoin’s hashrate spiked to over 1 petahash per second (PH/s) on May 17 at the height of the euphoria. But as the hype dies down, the hashrate has returned to its previous levels.
Read More: https://bitcoinist.com/dogecoin-hashrate-drops-34-in-one-day/
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