Elon Musk’s Tweet Reveals Why His Favorite Crypto Token Is Dogecoin

Tesla head Elon Musk just said “Dooooge” in response to a tweet about higher transaction fees on Ethereum. Due to this, interest in his favorite crypto has increased again. Along with this, there are also indications how it can be used to increase people’s access to Decentralized Finance (DeFi). Musk has given suggestions to crypto investors several times through his Twitter handle. Even before this he has been tweeting about the meme token Dogecoin.

DeFi Systems aims to provide an autonomous and decentralized option for financial services controlled by banks. Most DeFi applications are based on the Ethereum blockchain, with high transaction fees due to the cost of each Ether (ETH) token. CoinDesk has made a report about the cost of using DeFi for small investors. In response, Musk tweeted a one-word response, “Dooooge”, alluding to his favorite crypto token, Dogecoin.

The report states that Dogecoin has low transaction fees. It is around $0.65 per transaction. This is a big reason why Musk called Dogecoin “the people’s crypto” in October. However, he also believes that the transaction fees for Dogecoin should be further reduced. With this, it can be used for payment like buying movie tickets. Each transaction on the Ethereum blockchain requires computational resources and therefore a transaction or “gas” fee is charged. Gas prices are in “gwei”, a denomination of Ethereum. Each gwei is equal to 0.000000001 Ether.

Ethereum says the gas fee helps keep the network safe from bad guys who can spread spam. The reason for the high gas fees on the Ethereum blockchain is the popularity of this blockchain network. However, due to the high fees, many people are also facing problems.

Last month, beer company Budweiser launched a collection of non-fungible tokens (NFTs) built on Ethereum. To buy it had to pay a gas fee of $ 75. Many people expressed their displeasure over this.

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