Dogecoin network update to boost mainstream adoption, trigger next DOGE rally
- Dogecoin can now be spent at 1,704 merchants, nearly three times last year.
- Co-founder Billy Markus argues that if all major miners and node operators update to version 1.14.4, fees can be lowered by default.
- Dogecoin ranks in top 10 cryptocurrencies mentioned the most on Twitter, social dominance of the memecoin increases.
The Shiba-Inu-themed cryptocurrency’s utility is rising with news of AMC’s adoption of DOGE as a payment method. Traders are now anticipating a reduction in transaction fees and a recovery in DOGE.
Dogecoin update to reduce fees, likely to trigger breakout in DOGE
The Dogecoin core has been regularly updated over the past month. In August, a new version of Dogecoin Core, v1.14.4 was released to improve performance and lower recommended fees.
The recommended update is not installed by all node operators. Its installation would enable future fee reductions in the DOGE network. Billy Markus, co-founder of Dogecoin tweeted about this recently,
yep yep ~ all 1.14.3 nodes please update to 1.14.4 and we can release low fees by default! pic.twitter.com/4DFvFDqpEf
— Shibetoshi Nakamoto (@BillyM2k) September 22, 2021
Once all major miners update to the latest version, transaction fee is expected to reduce 1000x for relay and 100x for mining. This is the first step towards lowering the recommended fee for DOGE, another network adaptation is expected to follow.
With regular updates in its ecosystem, the altcoin’s utility is on the rise. Nearly 600 merchants accepted DOGE payments in January 2020, the number has climbed to 1704 since then.
The altcoin’s rising acceptance becomes further evident from its rising social dominance. Over the past week, DOGE ranked in “top 10 most mentioned cryptocurrencies” on Twitter. A rise in social media mentions is followed by a rally in the altcoin. Analysts expect DOGE to recover, the altcoin is struggling after price was rejected at key resistance level.
@venturefounder, a cryptocurrency analyst and trader, is of the opinion that even the most resilient memecoin, DOGE, is losing its dominance. The analyst predicts that there is a wait ahead of the next “perfect storm,” meaning a surge in Shiba-Inu-themed cryptocurrency’s price.
This chart shows #memecoins fading into irrelevance since the May 2021 crash. Even the most resilient memecoin $DOGE is losing dominance, from 3.3% at peak to 1.5% today. Maybe someday memecoins will make a comeback, but may have to wait a long time for the next perfect storm. pic.twitter.com/3UxisCEI0U
— venturefoundΞr (@venturefounder) September 23, 2021
FXStreet analysts have predicted a drop in DOGE price to $0.15.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
