Effective yesterday, the Ethereum network’s move to a Proof-of-Stake (PoS) consensus mechanism has reshuffled some cards in the industry. If its native crypto, ether, is still the main altcoin on the market, it has however lost another title. Its place as the second largest Proof-of-Work (PoW) based crypto by market capitalization now goes to Dogecoin.
Towards a duel with ETHPoW or a switch to PoS
With a market capitalization close to 8 billion dollars, Dogecoin is ahead of Ethereum Classic (ETC), Litecoin (LTC) or Monero (XMR) in the ranking of PoW cryptos. The first place is still occupied by bitcoin. It should be retained by the latter except in the event of a change in the consensus mechanism. The present rise of Dogecoin in this symbolic capacity is variously valued given its status as a memecoin. Several members of the crypto community have also mentioned the need to ban this cryptocurrency from the market. ” useless “.
However, Dogecoin could quickly be demoted in the hierarchy of PoW cryptocurrencies without such a drastic measure. ETHPoW (ETHW), the native cryptocurrency of the blockchain derived from a hard fork of Ethereum, could in particular take this place. Such a breakthrough of the ETHW is all the more plausible as the latter currently enjoys the support of some of the miners. But not only; the ETHW also benefits from the crypto exchange support.
Moreover, the quest for legitimacy with the public could encourage the Dogecoin Foundation to look more closely at its plan to transition to PoS.
Announcement of Dogecoin’s new status has not been beneficial to memecoin price. He shows a loss of 1.5% over the last 24 hours. For its part, ETH is still trading below $1,500 the day after its native blockchain was upgraded. However, the community expects it to take off once the ecosystem realizes the benefits of moving to Proof-of-Stake.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!