The price of DOGE is back on the rise (+43.10% over 7 days). The prospect of lower transaction fees, supported by Elon Musk, is boosting purchases and the price.
It’s not all doom and gloom in the cryptocurrency landscape. Since values fell in mid-May, institutional and retail investors seem to be adopting more caution in their investment strategies.
As CoinShares notes, institutions are also diversifying their purchases into multi-asset products. So when Ether and Bitcoin products are racking up weeks in the red, these are moving against the tide.
The same is true for some tokens in the cryptocurrency market. In a crypto market up slightly by 2.7% on June 29, some crypto-assets are showing strong growth over the past 7 days.
This is the case of SHIB (+45.50%), Compound (+48.44%), CELO (+85%), but also the price of Dogecoin (+43.10% at 11:47 on June 29).
The token can count on the activism of its developers and the usual, but less exuberant, support of Elon Musk. As they announced a week earlier, the creators of Dogecoin are promoting a significant upgrade to the blockchain.
Their idea is to drastically lower the cost of DOGE transactions. This would see the fees divided by 100, going from 1 DOGE to just 0.1. For the core developer of Dogecoin, Patrick Lodder, it is crucial to support this initiative.
“This proposal to all dogecoin stakeholders suggests reducing the average fee for standard transactions on the dogecoin blockchain by 100x, sharing full control of all aspects of fees between miners and node operators, relying less on core development, and bringing back a (small) functional free transaction space that incentivizes keeping the network healthy,” he summarized on Reddit.
The developers of Dogecoin assume that a reduction in fees will encourage the development of uses of the cryptocurrency: remittances, payment for online purchases, etc. The endgame, then: increase the overall volume of transactions.
A shadowy advisor to Dogecoin since 2019, Elon Musk is once again lending his support to the move. And no pun intended now. Laconically, the Tesla CEO considers it “significant to support” this developer initiative.
It remains to convince enough miners and node operators to allow the actual deployment of the update. Remember that fees are not the main source of income for miners. They receive 10,000 DOGE per block. The fees are 20 to 30 DOGE.