Dogecoin price gains send it back among top 10 global cryptos

It remains to be seen how cryptos operating under proof of work protocols will fare over the coming year.

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Key points

  • The Dogecoin price is up 2% in 24 hours 
  • The meme token has retaken its 10th place spot among the globe’s top cryptos 
  • Following last week’s Ethereum merge, Dogecoin is now the second largest crypto operating on a proof of work protocol 

The Dogecoin (CRYPTO: DOGE) price is up 2% over the past 24 hours to 5.85 US cents.

That gives the crypto, which sports a Shiba Inu dog as its virtual mascot, a market cap of US$7.75 billion.

And that's enough to vault Dogecoin back into the number 10 spot on the list of top global cryptos, nudging ahead of Polkadot (CRYPTO: DOT), with a total market valuation of US$7.04 billion.

Though it should be said that this is more due to Polkadot's weakness than any huge surge in the Dogecoin price.

Despite today's bump, Dogecoin remains down 8% since this time last week. Polkadot has slid by 17%, according to data from CoinMarketCap.

Dogecoin now the second biggest crypto to operate on PoW

Last week Ethereum (CRYPTO: ETH) finally completed its long-awaited merge.

That merge now sees the network operating on a proof of stake (PoS) protocol versus the previous proof of work (PoW).

The switch entails validators staking some of their Ether to participate in verifying transactions and securing the blockchain. One of the biggest immediate advantages is a 99% plus reduction in the amount of energy used, as PoS requires far fewer energy-hungry computers.

With Ethereum exiting PoW, and the Dogecoin price rise edging it back to the number 10 spot, the meme token is now the second biggest crypto to operate on PoW. Bitcoin (CRYPTO: BTC), with a market cap of US$369.95 billion, remains the, erm, top dog in PoW protocols.

Where to next for the Dogecoin price?

It remains to be seen how cryptos operating under PoW will fare over the coming year. Part of that will depend on what issues may yet crop up for Ethereum under its new PoS system.

More immediately, the Dogecoin price could face a big move higher or lower after the US Federal Reserve announces its next interest rate decision on Wednesday (overnight Aussie time).

Equity and crypto markets have broadly priced in a 0.75% rate hike. But if the Fed opts to go harder sooner with a 1% rate boost in the world's biggest economy, risk assets will likely take a hit. Should the Fed surprise with a lower rate hike, the Dogecoin price will likely benefit.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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