Since the beginning of this year, everyone’s attention has been focused on the Ethereum network and the Merge, the much-awaited upgrade that the network is undergoing. This ground-breaking update caused a wide variety of changes not just inside the ETH environment but also in the outside world. After Ethereum completed its move to proof-of-stake [PoS], the proof-of-work [PoW] cryptocurrency market was taken over by ETH’s equivalent, Dogecoin [DOGE], which is now the second biggest cryptocurrency overall.
What is DOGE?
Dogecoin, abbreviated as DOGE, is a cryptocurrency that is peer-to-peer and open-source. The picture of a Shiba Inu dog serves as its trademark, and the cryptocurrency was introduced in December of 2013, making it an alternative cryptocurrency. The blockchain technology that underpins Dogecoin, which was originally developed for Litecoin, has some value. Dogecoin, which makes use of an algorithm known as script, is notable for several reasons, including its cheap price and its endless supply.
DOGE coin price increment
Dogecoin is a cryptocurrency based on a meme that was first created as a joke in 2013 and has now grown to become the second-largest proof-of-work (PoW) cryptocurrency after Bitcoin. This breakthrough comes only one day after the Ethereum blockchain completed its switch to the power-efficient proof-of-stake (PoS) mining model from the power-intensive proof-of-work (PoW) mechanism it had previously used.
The native cryptocurrency of Ethereum, known as Ether, has also, as a result, lost its position among the PoW currencies. Dogecoin, on the other hand, is now selling at $0.059 (which is equivalent to around Rs. 5), and its market value is at $7.83 billion at the moment.
Why are DOGE investors so happy?
The community around Dogecoin was overjoyed with the successful completion of the Merge, which was being celebrated by the whole community. Dogecoin was able to move up in the ranks to a position just behind Bitcoin [BTC] once Ethereum entered the world of proof-of-stake transactions. DOGE was at the top of the PoW cryptocurrency list when it came to market cap. Dogecoin paved the path for other cryptocurrencies such as Ethereum Classic [ETC], Litecoin [LTC], and Monero [XMR].
The market capitalization of Dogecoin was estimated to be $7.87 billion at press time, but its price saw a daily decrease of 2%. The price of Elon Musk’s preferred cryptocurrency was $0.0592 at present. As a result, many in the DOGE community started to rejoice over this victory. Several people were taken aback and were unable to believe what had just taken place.
How was the Merge responsible for Doge prices?
The transition from PoW to PoS on Ethereum was met with a great deal of resistance. By making adjustments, several people pointed out that the Ethereum network was going against the spirit of cryptography. In addition to this, opponents pointed out that the network was also interfering with the process of decentralization.
Following the recent statements made by SEC head Gary Gensler, the network is also under pressure from regulatory authorities. Since Ethereum transitioned to Proof-of-Stake, the community has been voicing their worries about the cryptocurrency being mistaken for security.
It is expected that the cryptocurrency sector will continue to focus on Bitcoin, DOGE, and other cryptocurrencies that are generated using proof-of-work algorithms. For example, Ethereum Classic received a significant amount of attention in the middle of the Merge. As a result, it is very possible that proof-of-work (PoW) cryptocurrencies could see greater attention in the days and weeks ahead.
Should Dogecoin go into proof-of-stake?
Despite the Merge, Dogecoin was still able to create headlines. Along the way, though, discussions on the potential of Dogecoin to enter the Point-of-Sale market were also started. Considering the intense attention that has been placed on PoW cryptocurrency for its energy usage, some people have pointed out the need for DOGE to include an alternate approach. However, several other people pointed out that Dogecoin uses a great deal less power than Bitcoin does.