DOGE Rallies 30% On Twitter Payments Anticipation As Elon Musk Props Up Dogecoin

• The meme token is leading large-cap tokens in weekly gains.
• A senior Dogecoin developer recently released proposed upgrades to improve Dogecoin.

Dogecoin traded at $0.104 at press time – a gain of 6% in the past day and 30% in the last week -coming amid speculations that Twitter could use the coin for payments. The bullish momentum accelerated DOGE’s market capitalization by $219,720,287 to a high of $13.9 billion on Tuesday, ranking among the top gainers in the crypto space.

The top and the earliest meme cryptocurrency defies a bearish pressure intensified by yet another bankruptcy filing from a major crypto lender. BlockFi filed for Chapter 11 bankruptcy protection in New Jersey on Monday over what it termed a ‘‘significant’’ exposure in the demise of FTX.

Since Ethereum migrated to the proof of stake consensus mechanism in mid-September, Dogecoin rose to become the second-largest PoW blockchain – incentivizing computer nodes to solve arbitrary mathematical problems for a chance to validate transactions on the blockchain. Currently, on-chain data shows that transactions per second in Dogecoin are 33 (faster than bitcoin’s 7) outside the lightning network.  

If Twitter were to adopt DOGE as a form of payment, pundits believe that the blockchain may need an upgrade to support higher transaction volumes, like in micro-tipping. Dogecoin could achieve such functionality by adding a layer-2 scaling solution to expand the block size.

Dogecoin eyes new updates to enhance network efficiency

Already, a series of upgrades are expected to expand the capacity of the eighth-largest cryptocurrency. According to a Tweet shared by Dogecoin core developer Patrick Lodder, “1.14.7 should release this year, including new features; 1.21, on which Doge’s future might be built, could come out in March 2023.”

Musk – a staunch supporter of DOGE, has been keen on the meme token’s upgrades, lauding their importance. The billionaire sees the updates as an opportunity to reduce fees, making it easy to use DOGE in daily transactions. Currently, Dogecoin is acceptable for payments at Tesla, GameStop, and AMC Theatres, among other corporations.