{"id":6692,"date":"2023-05-23T15:16:50","date_gmt":"2023-05-23T15:16:50","guid":{"rendered":"https:\/\/www.bitrabo.com\/community\/dogecoin-hashrate-drops-34-in-one-day-whats-going-on\/"},"modified":"2023-05-23T15:19:16","modified_gmt":"2023-05-23T15:19:16","slug":"dogecoin-hashrate-drops-34-in-one-day-whats-going-on","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/dogecoin-hashrate-drops-34-in-one-day-whats-going-on\/","title":{"rendered":"Dogecoin Hashrate Declines by 34% in One Day: What\u2019s Happening?"},"content":{"rendered":"\n
\n

After gaining popularity owing to the DRC-20 tokens, Dogecoin\u2019s hashrate experienced a sudden fall over the past 24 hours. What could be the cause of this drop in hash rate?<\/p>\n

<\/span>Investors Move to Other Ventures<\/span><\/h2>\n

Initially, when the Ordinals and BRC-20 craze started, investors rushed to the Bitcoin network, which led to a surge in the network\u2019s transactions. Developers soon replicated this concept into networks such as Dogecoin and Litecoin, which operate very similarly to Bitcoin\u2019s network.<\/p>\n

This led to the creation of DRC-20 tokens that allowed for the exchange of fungible tokens on the Dogecoin network similar to Ethereum\u2019s 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.<\/p>\n

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.<\/p>\n

<\/p>\n

DOGE hashrate falls 34% in one day | Source: CoinWarz<\/a><\/pre>\n
Data from the mining tracker shows that DOGE\u2019s 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).<\/p>\n
<\/span>Dogecoin Prices Remain Low<\/span><\/h2>\n
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.<\/p>\n
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.<\/p>\n
\"Dogecoin<\/p>\n
DOGE struggles to hold $0.073 | Source: DOGEUSD on TradingView.com<\/a><\/pre>\n
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.<\/p>\n
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.<\/p>\n
Follow Best Owie on Twitter<\/a> for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com<\/div>\n<\/div>\n