09-18-2022 icon

Dogecoin now second largest proof-of-work coin.

By Lucy Adegbe
Twitter

Following the Ethereum merge and the transition of the network to a proof-of-stake consensus mechanism, Dogecoin has now become the second-largest proof-of-work coin after Bitcoin based on market capitalization.

Launched as a Joke in 2013, Dogecoin is the 10th largest crypto coin, with a market capitalization of $7.95 billion.

Just like Bitcoin, Dogecoin is minted using the proof-of-work consensus mechanism where miners compete to solve complex mathematical operations to validate transactions and receive DOGE as a reward. The process is energy is energy-intensive.

According to currency.com, miners extract roughly 14.4 million DOGE daily, adding to the coin’s 132.6 billion supply. But unlike Bitcoin which has a fixed supply of 21 million, Dogecoin has no fixed supply.

Dogecoin rose to the limelight as the world’s richest man, Elon Musk has constantly shown support for the coin.