Dogecoin is down on Friday, losing 2.4% in a day and 6.37% in a week. This comes the day after the Ethereum merger, which changed the second cryptocurrency on the market from a PoW system to a PoS system.
Dogecoin, a cryptocurrency based on the proof-of-work (PoW) method and mining, has now become the second-most significant PoW cryptocurrency on the market, just after Bitcoin, as a result of this change.
In fact, all cryptocurrencies other than Bitcoin that have a higher market value than Dogecoin (Solana, Cardano, XRP, and BNB) are built on a PoS algorithm. As for the stablecoins that are ranked above the DOGE, they rely on algorithms, supply management systems, and reserve management to keep their connection to the Dollar strong.
Top cryptocurrency PoW rivals to Dogecoin include Litecoin (LTC) ($4.01 billion), Monero (XMR) ($2.65 billion), and Ethereum Classic (ETC), which has a market value of $4.69 billion.
Be aware that some people have noted that it calls into question a crypto’s legitimacy if it becomes the second-most significant PoW coin on the market.
Will Dogecoin go to PoS as well?
It is possible, nevertheless, that Dogecoin will also implement a PoS mechanism. In fact, the Dogecoin Foundation initially raised the possibility of switching from Dogecoin to a proof-of-stake system in September 2021, following a suggestion from Vitalik Buterin, the co-founder of Ethereum and a Dogecoin Foundation advisor.
The Dogecoin Foundation then published its “Dogecoin Roadmap” in December 2021, which included plans to create a “community staking” version of Dogecoin that resembled a PoS system.
The Dogecoin Foundation has said that “Such a release would allow all Dogecoin users to stake their DOGE and obtain more tokens to help the network.”
However, nothing more has been revealed about it since, and according to the Dogecoin website, the project still looks to be in the “proposal” stage.
