DOGS’ airdrop of 440 billion tokens from a 550 billion total supply quickly captured user interest amid ton blockchain’s temporary outage.
The recent market downturn might be ending for a new meme coin on The Open Network (TON). DOGS, a meme coin created by Telegram founder Pavel Durov, saw a significant 25% price increase on Thursday. The DOGS impressive rise followed a large airdrop and listings on major crypto exchanges such as Binance, OKX, and Bybit.
Source: CoinMarketCap
DOGS Airdrop Strains TON Network Capacity
DOGS, with its airdrop of 440 billion tokens out of a total supply of 550 billion, effectively grabbed user attention. The airdrop mainly targeted “Telegram OGs”, or long-time users of the app, leading to a sharp rise in activity on the TON network.
This increase in activity, however, led to challenges. The network saw over 20 million transactions in just two days, which caused a temporary outage for exchanges and the Telegram Wallet due to the heavy load.
The TON Foundation admitted that the high volume of DOGS transactions caused “garbage collection” issues, overloading many of the network’s validators. This problem led to a seven-hour halt in block production, pointing to the need for TON to upgrade its infrastructure to handle such a high level of user activity.
Even as the broader cryptocurrency market fell by more than 0.71% on Tuesday, pushing Bitcoin below $60,000, DOGS showed notable stability. Altcoin Sherpa, a well-known crypto analyst, observed that the token “didn’t move amidst all the volatility”.
After the network was restored, DOGS experienced a significant price increase, making it the top gainer among the top 100 cryptocurrencies in the last 24 hours. At the time of writing the token is trading at $0.00146, marking a 6% gain in the last 24 hours. The token’s market capitalization peaked at over $754 million, briefly placing it as the 78th largest cryptocurrency.
Can DOGS Maintain Its Momentum?
DOGS’ impressive debut demonstrates the power of a strong community and strategic airdrops to drive user adoption. However, the recent network overload exposes the need for TON to scale its infrastructure to handle such high volumes in the future.
Moving forward, the project’s success will hinge on its ability to develop a robust ecosystem that goes beyond meme-driven hype. Integration with Telegram, further exchange listings, and potential utility within the Telegram ecosystem could be key factors in driving long-term growth for DOGS.
Whether DOGS can maintain its current momentum or succumb to the volatility inherent in the memecoin space remains to be seen. One thing is certain – the project has captured the crypto community’s attention and sparked a conversation about the future of meme coins on the TON network.
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