Bitrabo Editorial
After gaining popularity owing to the DRC-20 tokens, Dogecoin’s hashrate experienced a sudden fall over the past 24 hours. What could be the cause of this drop in hash rate?
Investors Move to Other Ventures
Initially, when the Ordinals and BRC-20 craze started, investors rushed to the Bitcoin network, which led to a surge in the network’s transactions. Developers soon replicated this concept into networks such as Dogecoin and Litecoin, which operate very similarly to Bitcoin’s network.
This led to the creation of DRC-20 tokens that allowed for the exchange of fungible tokens on the Dogecoin network similar to Ethereum’s ERC-20 standard. As the tokens grew more popular, more transactions were recorded on the network. A report from NewsBTC shows that the number of DOGE transactions increased by 60x within 20 days due to DRC-20 tokens.
The spike in transactions also resulted in an increase in the network’s hashrate, given the higher workload. According to CoinWarz, Dogecoin’s hashrate hit over 1 petahash per second (PH/s) on May 17 at the peak of the hype. However, as the excitement died down, the hashrate went back to its original level.
DOGE hashrate falls 34% in one day | Source: CoinWarz
Data from the mining tracker shows that DOGE’s hashrate has dropped by over 34% over the last 24 hours. This coincides with a lull in interest in DRC-20 tokens. Since investors have moved on to the next big thing, the hashrate has gone back to 470.70 terahash per second (TH/s).
Dogecoin Prices Remain Low
One noticeable trend throughout the DRC-20 craze was that Dogecoin did not record any significant price increase. Instead, the meme coin barely budged, following the same trajectory as the rest of the crypto market.
As a result, DOGE has only recorded meager gains of 0.08% over the 24-hour chart. This follows the trend of a cumulative gain of 1.59% in the last seven days. Nevertheless, the digital asset remains stable as the eighth-largest cryptocurrency in the market.
DOGE struggles to hold $0.073 | Source: DOGEUSD on TradingView.com
Currently, DOGE is experiencing resistance at $0.075, making it difficult for the coin to rally. On the other hand, DOGE’s trading volume appears healthy at $163 million at a time when most cryptocurrencies are experiencing downward trends.
Considering these factors, it is unlikely that DOGE will move independently from this point. Instead, the meme coin will most likely follow Bitcoin’s movement patterns, or a tweet from billionaire Elon Musk could push its price upward.