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Investing.com – Like most cryptocurrencies on the market, the is down on Friday, losing 2.4% over 24 hours and 6.37% over a week, the day after the merger which saw the second cryptocurrency in the market fall. a PoW system to a PoS system.
However, this transition has also made Dogecoin, which is based on the proof-of-work (PoW) system and mining, the second most important PoW cryptocurrency on the market, just behind .
Indeed, all the other cryptocurrencies that are ahead of Dogecoin in terms of capitalization (, , , and BNB) are based on a PoS system, except Bitcoin. As for the stablecoins that are ahead of the DOGE in the ranking, they are based on reserve and supply management systems, or even on algorithms, to maintain the link with the Dollar.
As for the PoW challengers of Dogecoin in the top crypto, we will mention (ETC) (with a market capitalization of $4.69 billion), (LTC) (4.01 billion dollars) and Monero (XMR) ($2.65 billion).
Note that some voices have pointed out that the fact that a crypto itself becomes the 2nd most important PoW crypto in the market raises a question of credibility.
Will Dogecoin also switch from PoW to PoS?
However, it is not excluded that Dogecoin also adopts a PoS system. Indeed, the Dogecoin Foundation first hinted at a transition from Dogecoin to a proof-of-stake system in September 2021, with a proposal from Ethereum co-founder Vitalik Buterin, who is also an advisor to the Dogecoin Foundation.
Then, in December 2021, the Dogecoin Foundation released its “Dogecoin Roadmap”, which proposed to build a “community staking” version of Dogecoin resembling a PoS system.
“Such a release would allow all Dogecoin users to stake their DOGE and get additional tokens to support the network,” the Dogecoin Foundation had said.
However, no new information about it has come to light since, and the project still appears to be in the “proposal” state according to the Dogecoin website.