Dogecoin Ranked Second-Biggest Proof Of Work Network Post Ethereum Merge
- Dogecoin (DOGE) is now the second-biggest proof of work consensus based network, following the Bitcoin Network (BTC) by market cap, as Ethereum was successfully completed on September 15.
- The world’s largest meme coin is based on the proof of work mining model and just like Bitcoin, the DOGE token also requires computers to mine the cryptocurrency using electricity to solve complex hashes.
The Ethereum Merge was successfully completed on September 15, but there was no substantial market movement that investors had expected. However, one important fact that came out of this event was the fact that Dogecoin (DOGE) is now the second-biggest proof of work consensus based network, following the Bitcoin Network (BTC) by market cap.
Dogecoin debuted in 2013 and since then, has made it to the top 10 cryptocurrencies following support from Elon Musk, the founder and CEO of Tesla and SpaceX and has a market capitalization of $8 billion and a price of $0.06058. It is currently ranked as the 10th biggest cryptocurrency in the market.
The world’s largest meme coin is based on the proof of work mining model and just like Bitcoin, the DOGE token also requires computers to mine the cryptocurrency using electricity to solve complex hashes, i.e., compute mathematical problems and receive block rewards as DOGE tokens.
The network validators who use electricity to mine cryptocurrencies have come under increased scrutiny from regulatory authorities recently as many countries are pushing for a complete ban on crypto mining activities since they are putting a huge burden on the national grids.
According to data, each day miners successfully extract roughly 14.4 million DOGE tokens which are then pushed into the circulating supply. The current circulating supply of the world’s biggest meme coin stands around 132.6 billion and this is a major difference between DOGE and BTC. Bitcoin’s supply has been capped at $21 million by its creater Satoshi Nakamoto who remains anonymous.
While Dogecoin remains as one of the most popular cryptocurrencies due to support from Musk, the largest meme coin has been continuously compared with Shiba Inu (SHIB), another rival meme coin which ranks among the top 15 cryptocurrencies by market cap.
The transition of Ethereum from proof of work to proof of stake was one of the biggest events in the history of the crypto industry and market a historical milestone for the 2nd biggest blockchain network. However, it is imperative to note that DOGE’s importance has surged due to the same. Musk has confirmed that DOGE will be used to pay for the Loop by his Boring Company as well.