Dogecoin is making some noise right now.
When the Ethereum merger finally concluded on September 15, investors didn’t see the massive market change they expected.
However, a significant result of this event was that the meme-inspired cryptocurrency Dogecoin has now become the second consensus-based Proof-of-Work (PoW) network, behind only the Bitcoin network in terms of market value.
According to ETHPoW’s official Twitter account, Dogecoin is likely to compete with ETHPoW, which is the Ethereum PoW hard fork chain that is expected to maintain mining.
Bitcoin remains the most valuable PoW blockchain with a market cap of $380 billion, according to TradingView data. Next to Bitcoin and Dogecoin, Ethereum Classic, Litecoin, and Monero have the third, fourth, and fifth largest PoW blockchains, respectively.
Wrapping 10th place on the top crypto list
Dogecoin was launched in 2013 and has since risen to the top 10 cryptocurrency rankings. The crypto is currently trading at $0.060888, down 4.8% over the past seven days.
The joke coin now ranks 10th on Coingecko’s list of top cryptocurrencies. In the previous 24 hours, BTC was trading at $19,709, down 2.5%, while ETH was trading at $1,474, down 9.7%.
As with Bitcoin, DOGE is mined using proof of work, which requires miners to use powerful computers and a significant amount of energy to solve complex mathematical problems to validate transactions and earn DOGE.
Regulatory authorities have recently increased their scrutiny of network validators, with many nations advocating a total ban on crypto mining activities as they place significant strain on national networks.
Dogecoin PoS transition to the drawing boards
Approximately 14.4 million DOGE are mined daily, according to cryptocurrency tracking platform Currency.com, adding to the coin’s supply of 132.6 billion. Unlike Bitcoin, which has a restricted supply of 21 million, Dogecoin has no supply limit.
Meanwhile, the Dogecoin Foundation has been contemplating a transition from Dogecoin to a proof-of-stake (PoS) mechanism after Ethereum co-founder Vitalik Buterin, who is also an advisor to the foundation, suggested the switch in September last year.
In recent years, the dog-inspired crypto has gained a rare champion in the world’s richest person, Tesla CEO Elon Musk, who has tweeted about the coin since 2019 and on several occasions caused the price to of Dogecoin increases.
DOGE total market cap at $8.11 billion on the daily chart | Source: TradingView.com Featured image Times of India, Chart: TradingView.com