On Monday, June 28, Elon Musk tweeted his support for the Dogecoin fee policy change proposal.
The major update will extremely redesign the cryptocurrency’s software architecture and revise its token economics.
The joke crypto seems like it is preparing to become a serious utility token following a massive invasion of capitalization earlier this year.
Crypto investors are still waiting whether Musk’s support would be good or bad for the Doge holders.
Dogecoin core developer Patrick Lodder summarized the proposed updates in a Reddit thread.
He wrote that the suggestion to all Doge token stakeholders is to reduce the average fees by 100x for standard transactions on the Dogecoin chain.
He added that it will divide the full control into all aspects of fees between and node operators.
Also, it will rely less on core development and will take back a small free transaction space that stimulates keeping the network healthy.
An analyst stated that lower fees may attract more users who are looking to use the crypto asset for cash checking, remittances, and merchant payments online.
Moreover, it may lower the incentive for miners to sustain, validate, improve, and fasten the Doge blockchain.
In a reply tweet last June 28, Musk told Dogecoin core developer Ross Nicoll that these updates are important to support.
The founder of the blockchain Cardano, Charles Hoskinson said in a recent podcast that he is happy that Musk is stirring the pot for Dogecoin.
He also added that he’s hoping for the attention to prompt real developers to come in and begin working on doge to make it useful so that its value won’t collapse.
Furthermore, the price of dogecoin spiked from $0.242 to $0.266 before touching a key resistance around the $0.260 level.
Over the past 24 hours, its price increased 10.82% even though it was down 21.77% last week.
There is a market capitalization of $31,533,681,624 with a 24-hour trading volume of $4,671,091,510.
Its 52-week high is $0.74 with a 52-week low of $0.0023.
Over the past week, it hit a high of $0.31 and a low of $0.16. Its price edged up during the past 90 days.
An analyst stated that it is important to note that the prices of cryptocurrencies are always fluctuating.
He added that if you bought a single Dogecoin during its 52-week low of $0.0023 and sold it at today’s $0.24 price then you’d profit around $0.24 with a 99.06% positive return.
On the other hand, if you purchased it at its 52-week high of $0.74 and sold it at today’s price, you will have a negative return of $0.50.