Dogecoin Falls 13% on Ethereum-Like Merge Rumors
Monday, January 30, 2023
HomeAltcoinsDogecoin Falls 13% on Ethereum-Like Merge Rumors

Dogecoin Falls 13% on Ethereum-Like Merge Rumors

According to CoinGecko data, the price of Dogecoin has decreased 13% in the past week and 6% in the previous 24 hours to slightly under $0.07. This week, the notoriously unstable meme coin fell because people were worried about possible changes to the proof-of-work mining model, which uses a lot of energy.

Rumors that Dogecoin may switch to a more energy-efficient proof-of-stake architecture, similar to Ethereum’s long-awaited merger in September, are circulating again on social media, prompting one of Dogecoin’s primary engineers to deny that any substantial change is coming. On Wednesday, Michi Lumin, a key developer at the Dogecoin Foundation, stated that social media influencers who have posted about the currency and anticipated changes in the future “do not truly have the inside scoop on what’s going on with Dogecoin.”

Lumin, on the other hand, said that there is a plan to provide a proposal to the community about a possible proof-of-stake transition, although the developer stated that the proposed technique would “differ from classic [proof-of-stake] in many respects.” Lumin further said that such a change would be hard to implement without first obtaining the permission of the majority of Dogecoin’s node validators, and that the Dogecoin Foundation could not compel such a change unilaterally.

As previously said, Ethereum is the most visible example of a cryptocurrency that moved to a proof-of-stake consensus mechanism, having completed its much anticipated merge event in September of this year. While proof-of-stake is a more energy-efficient method of powering a decentralised blockchain network, others argue that it is less secure than proof-of-work.

Despite the excitement around Ethereum’s merger and the energy savings, the price of ETH fell precipitously when the changeover was completed. With a roughly $9.3 billion market value, Dogecoin is the second biggest proof-of-work cryptocurrency, after Bitcoin’s $316 billion market cap.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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