Dogecoin’s recent social media hype has few lessons for potential traders
According to LunarCrush’s new report published on 24 September, Dogecoin has been showing extreme growth in its social media department.
This new spike in social media growth could have been sparked by Ethereum founder Vitalik Buterin’s comments that he made with regard to Proof of Work blockchains.
During a recent event hosted by Messari on 21 September, called the Mainnet, Vitalik Buterin was asked whether all networks should move to POS. In response, he stated that he hopes that Dogecoin and Zcash, both move to PoS soon.
Dogecoin currently is the second largest POW chain in the world. And, there haven’t been any new updates from theDogecoin Foundation about a plan to switch.
If Dogecoin does plan to make a switch, the move will alienate a lot of miners who are profiting off of mining DOGE.
As can be seen from the image below, DOGE’s hashrate has been increasing steadily over the past month. Ergo, implying that the number of miners has been increasing on the Dogecoin network. This goes on to show that the strength of the network has been on a northward journey.
Source: Messari
Even though Vitalik’s comments may not be able to nudge the team at Dogecoin to move in the POS direction, it could be one of the reasons why DOGE has been seeing an immense surge in the social media space.
According to Lunar Crush, Dogecoin hit AlternativeRank of one out of the top 3,899 coins across the market.
Well, AlternativeRank is calculated by observing the coin’s price, volume, social media volume, and social score.
Source: LunarCrush
Even though there are a lot of positive factors in favor of the coin, there are some metrics that readers should keep in mind before entering a trade.
DOGE’s velocity has been on a decline over the past month. Thus,
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