Now that Ethereum has moved to a PoS consensus mechanism, Dogecoin has positioned itself as the second largest PoW cryptocurrency.
Following the successful implementation of The Merge on Ethereum, which took place early in the morning on Thursday, September 15, 2022, the token meme Dogecoin has officially become the second largest Proof-of-Work cryptocurrency by market capitalization.
Dogecoin, with a market capitalization of over $7.900 billion, sits comfortably in second place among PoW cryptocurrencies, far behind Bitcoin, but well ahead of third, Ethereum Classic, which has a market cap of around $4.700 billionIn fourth place we find Litecoin with almost 4.000 billion dollars and in fifth place Monero, with 2.650 billion.
The news has not been well received by everyone, as the Elon Musk's favorite token It also has many detractors, who have not been slow to express themselves on social media, pointing out that “it is impossible to take the cryptocurrency industry seriously if a meme token is so close to the top spot” and that, to improve the sector, it would be necessary get rid of this type of useless cryptocurrency.
On the other hand, Dogecoin could soon find itself with a new competitor, EthereumPoW, Ethereum forked chain driven by a group of miners who wish to continue their work. Although the developers announced that the fork would take place 24 hours after The Merge, it is have encountered some technical difficulties in development, so there is still no set date for the fork of the new chain.
Ethereum's Proof of Stake transition is a problem for Proof of Work chains
One of the main changes that Ethereum implies moving from a Proof of Work mechanism to a Proof of Stake is a 99,95% reduction in energy consumption, which has almost immediately caused several environmental groups to ask Bitcoin developers to follow the same path.
The transition to Ethereum is putting pressure on Proof-of-Work networks. Added to this is the current global situation, with energy supply problems around the world, which are threatening economic stability.
In this sense, the Dogecoin Foundation presented in September 2021, from the hands of Vitalik Buterin himself (who is also an advisor to the Dogecoin foundation), a Plan for meme token to become a Proof-o-Stake network, with a consensus mechanism based on community staking.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
