Musk's move has shattered the faith in Dogecoin! Miners are in an uproar, retail investors are in civil war, and the crypto space is in chaos!
Musk's recent deep involvement with $DOGE has completely broken the label of a purely speculative asset, but it has also caused the entire ecosystem to split. Miners are collectively anxious due to their interests being harmed, and retail investors are quarreling endlessly due to ideological differences. DOGE is standing at a crossroads between practical transformation and deviation from its original intention.
Unlike previous instances where a single phrase could drive up prices, Musk this time pointed directly at the core. Some Tesla charging stations have already tested DOGE payments, and SpaceX has included it in the small settlement system for satellite procurement, promoting DOGE's transformation from a meme coin to a payment-type cryptocurrency. After the news was announced, the number of on-chain DOGE transactions surged by 320% within 48 hours, and the proportion of small payments jumped from less than 5% to 28%, completely shedding its purely speculative label.
However, the transformation has sparked intense conflict. The miner community sees their profits diluted due to optimized transaction speeds, and exclusive node clusters are suspected of monopolizing computing power, leading to shutdowns at small and medium mining farms, with overall network computing power dropping by 18% within 24 hours and second-hand mining machine prices plummeting by 30%. Retail investors have split into two factions: the believers are cheering for the practical value finally emerging, while the speculators are panicking as price fluctuations narrow, making it harder to profit.
Despite DOGE's opportunity for change, three major hidden dangers remain: the application scenarios only cover a small range of pilot projects, and the stability of implementation is questionable; the EU's regulatory bill requires compliance for payment-type crypto assets, and DOGE's anonymity may struggle to pass scrutiny; Musk's node cluster has been criticized for being semi-centralized, contradicting DOGE's original decentralization intent.
For retail investors, DOGE's value has shifted from Musk's endorsement to the ability to implement application scenarios; for the ecosystem, how to balance practical transformation with miners' interests, centralized efficiency with decentralized principles, is key to determining whether it can truly change. This game of transformation and growing pains is bound to be full of challenges.
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