The popular memecoin, Dogecoin, is working on a transition to a proof of stake mechanism with the help of some heavy hitters in the industry. Digital assets have grown to a record-high $ 0.8 holder base with 4 million holders. However, since then, there has been a constant downward trend due to the devsupping utility for continuing tokens.
Buterin supports Dogecoin’s Proof of Stake
In a recent UpOnly podcast episode, Ethereum founder Vitalik Buterin shared his thoughts on meme coins and what he was doing to guide him in this new direction. Buterin isn’t the first to show memecoin support, but it’s the first time he’s actually talked about participating in a project. In addition, he confirms that Dogecoin is actually migrating to the proof of work mechanism.
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The founder pointed out the official roadmap for meme coins, which first mentioned the transition to the Proof of Stakes. Since then, much less has been said about this part of the roadmap until Buterin mentioned it in the podcast.
The founder, who is preparing his project to complete the transition to Proof of Stake, explained that this is an unavoidable destination for most projects. He said it’s a mechanism that empowers owners about what happens in crypto projects by allowing everyone to participate in it.
Buterin supports Dogecoin by serving as an advisor to the Dogecoin Foundation, announced last year. He has stated in the past that he hopes that Memecoin will eventually move to the Proof of Stake consensus mechanism, and this seems to happen.
Doge on the chart
Dogecoin still tends to be low in price. The meme coin, which began to gain popularity last year, was unable to reproduce the surge that hit a record high. Prices have not yet approached the same period last year, but have fallen sharply since their peak in May 2021.
Doge loses over 60% of all-time high | Source: DOGEUSD on TradingView.com
Most of the downtrend can be due to the disappearance of the hype surrounding the coin. After digital assets approached the $ 1 price, investors who didn’t acquire them early had to look elsewhere for assets that could offer the same kind of returns. Therefore, investors were starting to leave Dogecoin for other options like the Shiba Inu, which was still cheap at the time.
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The price of Dogecoin is currently $ 0.14, the lowest in eight months.
Featured image from Crypto News, chart from TradingView.com