Dogecoin Becomes Second Biggest PoW Cryptocurrency

The meme-inspired cryptocurrency Dogecoin (DOGE) is now officially the second-largest proof-of-work (PoW) crypto by market capitalization...


The meme-inspired cryptocurrency Dogecoin (DOGE) is now officially the second-largest proof-of-work (PoW) crypto by market capitalization, after the Ethereum Network Proof of Stake Upgrade September 15.

Bitcoin (BTC) of course remains miles ahead of Dogecoin market capitalization of $7.83 billion, although the well-followed memecoin is still comfortably ahead of the third-place PoW cryptocurrency Ethereum Classic (ETC) (with a market cap of $4.69 billion), Litecoin (LTC) ($4.01 billion) and Monero (XMR) ($2.65 billion).

Ranking of PoW-based cryptocurrencies by market capitalization. Source: Coinmarketcap.com.

A Dogecoin fan seemed in disbelief of Dogecoin’s rise to become the second largest PoW cryptocurrency, indicating “Who would have thought this would happen. Congratulations #Dogefam.

But it was not taken well by everyone. A Twitter user responding to a tweet about the news asked how people could take the crypto industry seriously with a memecoin so close to the top spot, stressing the need to remove ‘unnecessary coins’ from view public.

But Dogecoin may also soon find itself competing with ETHPoW – the Ethereum PoW hard fork chain that will continue to mine, according on the official ETHPoW Twitter account, which is currently dear at $13.64.

Ethereum’s transition to PoS may have added pressure on PoW-powered cryptocurrency networks to move to a more sustainable consensus mechanism.

In a statement to Cointelegraph, Lachlan Feeney, the founder and CEO of Australian blockchain development agency Labrys said “the pressure is on ‘Bitcoin now to justify PoW in the long run’.”

He added that “the reluctance to make its own transition to PoS will be huge.”

Meanwhile, the Dogecoin Foundation considered a transition from Dogecoin to proof-of-stake after first hinting at the change in September 2021, which was proposed by Ethereum co-founder Vitalik Buterin, who is also an advisor for the Dogecoin Foundation.

In December 2021, the The Dogecoin Foundation has released its “Dogecoin Trailmap” which offered to build a “community staking” version of Dogecoin that resembled PoS.

Related: Proof-of-stake vs. proof-of-work: the differences explained

“Such a release would allow all Dogecoin users to stake their DOGE and get additional tokens to support the network,” the Dogecoin Foundation said.

However, little progress has been made since then, as it still seems to be in “proposal” status according to the Dogecoin site.

DOGE is currently priced at $0.06 at the time of writing.