Dogecoin has not often been in the spotlight in the cryptocurrency community lately. One of the brightest occasions was Dogecoin’s co-founder’s admission about the amount of DOGE in his possession, which he revealed in December 2021. At the time, the amount in question was 220,000 DOGE, or roughly $42,000 at the exchange rate at the time. Read more about this in a separate article.

What are the advantages of Dogecoin

Tenev’s first argument: Dogecoin fees are low enough for the cryptocurrency to be considered as a convenient payment method. Right now, the average fee for a DOGE transfer is hovering around $0.003. As proof, Robinhood’s head posted a screenshot of a 1 DOGE transaction.

Screenshot of 1 DOGE transaction fee

It is important to note that in the Solana network the commissions are even lower. And this blockchain is home to many applications from decentralized finance, NFT tokens, and other important parts of the decentralized world. That is, it is - unlike Dogecoin - an entire ecosystem, which makes Solana a much more attractive payment tool than DOGE.

Block size and mining time should be the main areas of work on the cryptocurrency if it is to become very popular indeed. Here is Tenev’s quote on the matter, published by news outlet Cointelegraph.

Ideally, the block time, or the time between adding consecutive blocks to the chain and verifying the transaction should be small enough that the transaction can be written to the next block in less time than it takes to pay at a merchant terminal.

Dogecoin currently has a block size of 1 megabyte, while the extraction time is fixed at a minute. On that basis, the altcoin’s throughput is around 40 transactions per second. That’s really not enough: large payment systems have a throughput of up to thousands of transactions per second.

Again, right now the already mentioned Solana has a figure of 2,370 transactions per second. Accordingly, the Dogecoin argument does not work here either.

Solana blockchain throughput

Dogecoin is often used by crypto-enthusiasts themselves, not only because of its prominence as a meme, but also because of its convenience in terms of transactions. However, Tenev’s observation is a good one: Dogecoin really “lacks power” for wider use. The head of Robinhood has appealed to the coin’s developers to solve the problem.

The topic of Dogecoin was also addressed this week by Sam Bankman-Fried, CEO of popular cryptocurrency exchange FTX. He reacted to Musk’s desire to buy Twitter and said that the platform could well become decentralised. It could also be monetised using Web 3 technologies, i.e. adding blockchain, NFT and other trending components.

Dogecoin exchange rate

Decentralisation for Twitter would mean moving the platform to public blockchain. In this way, users would have access to all of its data and would also be completely free to moderate content. Bankman-Fried noted that fees could be charged for interacting with the blockchain, which is the most promising way to monetise it.

Let’s say the protocol at the heart of the platform would charge some sort of fee for posts. With 500 million tweets per day, just a cent per tweet could replace half of Twitter’s revenue.

If Twitter were to be on a blockchain, integrating crypto payments and NFT support would be easy. In that case, the platform’s main cryptocurrency could well become DOGE, the FTX executive believes. It is Ilon Musk’s “favorite coin”, it is quite recognizable and has even managed to become one of the symbols of the Internet, according to Decrypt. Given the low cost of transactions, Dogecoin could easily get a “second life” as a useful tool for one of the biggest social platforms.


We don't think the arguments for Dogecoin's popularity seem convincing. Yes, the cryptocurrency has generated huge returns for investors in 2021 and attracted many newcomers to the coin industry - but that is where its merits end for now. Still, Doge has no app ecosystem and no other use than to make payments. Therefore, a new social network based on existing modern blockchains might be a suitable option in this case. Or at least opt for a more technically advanced cryptocurrency.

What do you think about it? Share your opinion in our Millionaire Crypto Chat. We’ll talk about other blockchain and decentralisation topics there too.