The Tesla founder Elon Musk tweeted in response to a proposal to reduce the fee.
Elon Musk’s tweeted support for a proposal to change dogecoin’s fee structure was followed by an uptick in the Doge price of the meme-based crypto.
The Tesla founder said it is important to support a reduction in Dogecoin transaction fees.
His tweet was in response to a proposal by dogecoin developer Patrick Lodder to reduce fees to 0.01 Dogecoin in order for the cryptocurrency to remain competitive.
The current recommended fee of 1 Dogecoin has "become steep for the perceived value of transacting dogecoin," and is "disincentivizing on-chain transactions unnecessarily," Lodder wrote on GitHub, a website where software developers share codes, development tools, and ideas.
Lodder argues that whereas Dogecoin transactions used to be 10 times cheaper than litecoin's transactions, they are now nearly five times more expensive.
Dogecoin price subsequently rallied to the above price of $0.26. It has since pulled back, sitting at $0.256 at press time.
Bull run shift snatched Dogecoin spotlight
The bull run that began in 2021 picked up in February, slowed down up to early April, but caught fire in mid-April, pushing many Cryptocurrency to new all-time highs. Despite Dogecoin's price has one of the best performances this bull run, its prospect as a meme coin dwindled.
Perhaps, the main reason for this is the increased meme coins like Shiba Inu, Akita, SafeMoon, and so on. The new meme tokens are extremely popular and were relatively less expensive than Dogecoin, which as a group siphoned many retail investors away from DOGE.
With retail shifting to newer dog coins, so did the capital, which might explain the almost zero social volume for Dogecoin.
This metric tracks the number of mentions on Twitter, Telegram, Discord, and other platforms. The higher the social search volume for an asset, the more investors are investing in it. Currently, DOGE’s social volume stands at 121, in contrast to 177 for Shiba Inu and 53 for SAFEMOON, suggesting that buyers are clustered more toward Shiba Inu than Dogecoin.
While one can speculate that this shift might have also triggered capital rotation, it cannot be portrayed with the utmost certainty.
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