Popular meme coin Dogecoin is working towards moving to a proof of stake mechanism and it is getting help from some heavy hitters in the industry. The digital asset had grown to a holder base of 4 million holders and an all-time high of $0.8. However, since then it has been a case of constant downtrend with devs upping utility for the token to keep it going.
Buterin Supports Dogecoin Proof Of Stake
In a recent podcast episode of UpOnly, Ethereum founder Vitalik Buterin shared thoughts around the meme coin and what he was doing to help guide it in this new direction. It will not be the first time that Buterin will be showing support for the meme coin but is actually the first time that he has talked about getting involved in the project. Additionally, he confirms that Dogecoin is indeed moving to the proof of work mechanism.
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The founder had pointed towards the official roadmap of the meme coin which had first made mention of the move to proof of stake. There has not been much said about this part of the roadmap since then until Buterin made mention of it on the podcast.
The founder whose own project is gearing up to complete the move to proof of stake explained that this was an inevitable destination for most projects. It is a mechanism that gives holders more power over what happens with a crypto project by enabling everybody to take a part in it, he said.
Buterin supports Dogecoin by being an advisor on the Dogecoin Foundation which was announced last year. He has previously stated in the past that he hopes the meme coin eventually moves to proof of stake consensus mechanism and it looks like this will be happening.
Doge On The Charts
Dogecoin is still trending low in terms of price. The meme coin which had started gaining popularity last year has been unable to replicate the surge that sent it towards a new all-time high. It is still not close to its price point at the same time last year, but it had declined significantly from its May 2021 peak.
Doge loses over 60% of all-time high | Source: DOGEUSD on TradingView.com
Most of the downtrend can be attributed to the die down of the hype surrounding the coin. After the digital asset had gotten close to the $1 price mark, investors who had not gotten in early had to look elsewhere for an asset that could provide the same kind of returns. Thus, investors had begun to leave Dogecoin for other alternatives like Shiba Inu that were still cheap at the time.
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The price of Dogecoin is now $0.14, trending at an 8-month low.
Featured image from Crypto News, chart from TradingView.com