Following the Ethereum merger, Dogecoin is second only to Bitcoin as the largest proof-of-work cryptocurrency.
The meme-inspired cryptocurrency Dogecoin (DOGE) is now officially the second-largest Proof-of-Work (PoW) cryptocurrency in terms of market capitalization after the Proof-of-Stake (PoS) upgrade of the Ethereum network on Thursday.
Bitcoin (BTC) is of course still far ahead of Dogecoin’s $7.83 billion market cap, although the much-touted $4.69 billion memcoin (LTC) is worth $4.01 billion and Monero ( XMR) — $2.65 billion.
Cryptocurrency ranking based on PoW by market capitalization. Source: CoinMarketCap
One Dogecoin fan did not seem to believe that Dogecoin would become the second largest PoW cryptocurrency, saying “Who would have thought this would happen. Congratulations, #Dogefam.”
But it was not well received by everyone. One Twitter user, responding to a tweet about the news, wondered how people can take the crypto industry seriously when memcoin is so close to the top, emphasizing the need to remove “worthless coins” from the public eye.
Dogecoin may also soon compete with ETHPow (ETHW), an Ethereum PoW hard fork network that will continue to mine, according to the official ETHW Twitter account, which is currently worth $13.64, according to CoinMarketCap.
The transition from Ethereum to PoS may have increased pressure on PoW-based cryptocurrency networks to move to a more robust consensus mechanism.
In a statement to Cointelegraph, Lachlan Feeney, founder and CEO of Australian blockchain development agency Labrys, said there is “pressure on Bitcoin right now” to justify a PoW scheme in the long term.
He added that “the reluctance to move to PoS on your own will be huge.”
Meanwhile, the Dogecoin Foundation is considering a transition from Dogecoin to Proof-of-Stake after the first hint of a transition in September 2021 proposed by Ethereum co-founder Vitalik Buterin, who is also an advisor to the Dogecoin Foundation.
In December 2021, the Dogecoin Foundation published their Dogecoin Trailmap, which proposed the creation of a PoS-like version of Dogecoin for community staking.
Related: Proof-of-Stake and Proof-of-Work: Explaining the Differences
“This release will allow all Dogecoin users to stake their DOGE and receive additional tokens to support the network,” the Dogecoin Foundation said.
However, little progress has been made since then as it is still in “offer” status according to Dogecoin’s website.
At the time of writing, DOGE is currently worth $0.06.