Dogecoin Falls 13% Following Rumors of a Proof-of-Stake Transition

credit – The Economic

The popular meme coin has taken a hit to its value in the closing days of the year, as Dogecoin has fallen 13%. Moreover, the fall appears sot be connected to recent speculation that there will be a proof-of-stake (PoS) transition on the horizon.

The last week has seen the original meme coin fall 13%, with the last 24 hours seeing a 6% drop to $0.07 according to CoinGecko. Additionally, the volatile meme coin is the center of speculation amidst a potential adoption of the PoS mining model.

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Source: TechStory

Dogecoin Falls to Close 2022

Rumors have been rampant that Dogecoin is set to embrace a transition to he more energy-efficient PoS model, similar to Ethereum’s September merge. Subsequently, with social media speculatively observing the coin, one of its core developers denies that the move would be imminent.

Michi Lumin, a Dogecoin principal Engineer, urged the community against listening to influencers. Lumin stated that many discussing the potential move, “do not actually have the inside scoop on what’s going on with [Dogecoin].” Conclusively, noting, “just because one says a validation method is changing, doesn’t mean it is.”

Additionally, Lumin notes that the move would be impossible without the approval of Dogecoin’s node validators. Thereafter noting that the Dogecoin Foundation is powerless to force that kind of transition.

When it comes to the PoS mechanism, Ethereum is the most notable adopter. The alternative mining method is a more energy-efficient way of powering decentralized blockchain, However, it is believed to be less secure than the proof-of-work model. Conversely, the September move for Ethereum was followed by a price drop.

Currently, Dogecoin is the second largest proof-of-work crypto, with a $9.3 billion market cap. Yet, it is still far behind the $316 billion market cap held by Bitcoin.