Transaction fees on Dogecoin (DOGE) surge to unprecedented levels
- The Dogecoin meme has created a value that has become viral time and time again.
- Since 2021, Dogecoin has surged by more than 1,800%, making it one of the highest crypto gainers for the year.
- Dogecoin’s growth was spurred by Elon Musk’s support and GameStop hype last month.
Dogecoin (DOGE) has continued its impressive gains, quickly attaining the 13th position when it comes to top cryptocurrencies by market capitalization.
The cryptocurrency started its rise after the GameStop hype and Elon Musk’s tweets about the token.
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Since the start of the year, the coin has made an impressive 1800% gain, making it one of the highest gainers among the top 20 cryptocurrencies.
Significant mining profit
He stated that the meme has created a value that has become viral time and time again.
And with Musk’s support adding relevance and credibility to the token, observers are predicting a further rise of the token’s price soon.
The total daily fees for the coins have increased to $27,000 from its previous $1,000 fee, which has earned miners significant income. It means that miners are now earning more in fees compared to Bitcoin Cash and Litecoin.
As of press time, DOGE’s transaction fees average $0.15. In comparison, average transaction fees on Bitcoin Cash and Litecoin are $0.0035 and $0.05 respectively.
DOGE’s market cap still far behind
The increase in DOGE’s transaction fees started when the price of the token surged uncontrollably two days in January.
However, the value of the token may likely not match that of Litecoin and Bitcoin Cash because DogeCoin runs on merged mining. There are no limitations placed on the supply of DOGE, and the present inflation rate is 4.1%. It gives DogeCoin a big drawback that gets some investors worried.
The January price surge of the token caused an increase in its volume from under $10 million to a $1.4 billion peak.
However, Bitcoin Cash has an $825 million 90-day average transaction volume. Dogecoin and Litecoin seem to be more often used for small value transfers. Despite Goge’s surge, Votta believes the BCH market cap will still be far ahead of DOGE’s market cap.