Dogecoin price is up around 8% after Elon Musk’s last open support.
Calling himself the “Dogefather”, Elon Musk said in his July 8 post that Dogecoin could do a better job of payments than Bitcoin (BTC) and Ethereum (ETH).
Musk: “BTC and ETH are too slow”
Tesla and SpaceX CEO was responding to crypto YouTuber Matt Wallace, who shared his excitement about the upcoming protocol update in his latest posts.
“BTC and ETH are trying to create a multi-layered transaction system, but the base layers have slow transaction speed and transaction fees are too high,” Musk argued.
“I think Dogecoin can increase the transaction speed of the base layer and minimize the transaction fee.”
With the protocol update, Dogecoin is expected to adopt on-chain transactions and exchanges are expected to take on the role of Lightning Network in Bitcoin.
Exchanges carry out a large number of transactions within the exchange without touching the blockchains of the cryptocurrencies they currently operate. These transactions are then synchronized as needed, resulting in more on-chain transactions and therefore less fees.
Responding to Musk’s posts, Twitter users suggested that exchanges would be happy to take on such a role.
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