Dogecoin has a robust meme coin following, yet many investors still avoid it due to its limited use cases and inflationary design. Every year, around 5 billion more DOGE are added to its circulating supply, which is already notable: 150.28 billion, to be specific. While the ongoing addition of new coins can incentivize spending, it makes the meme coin less appealing as a store of value when compared to digital assets with limited supplies, such as Bitcoin.
However, things could change for Dogecoin, as developers have proposed a network upgrade for it, which, according to experts, could lead to an increase in activity on its blockchain, with new protocols, games, and apps being deployed. This upgrade could transform DOGE into a DeFi chain and enhance its potential, attracting more people to learn how to buy dogecoin.
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How did the journey of Dogecoin begin?
Dogecoin started off as a joke, as its creators, Billy Markus and Jackson Palmer believed that crypto was being taken too seriously and wanted to create a lighthearted project without any particular purpose. On December 6th, 2013, they launched Dogecoin, taking inspiration from the popular Doge meme, portraying an adorable Shiba Inu dog with multi-colored Comic Sans text that were the dog’s “thought bubbles”.
To the surprise of its creators, Dogecoin became a near-instant success, gaining popularity on platforms like Reddit where it was used as a tipping currency, and still is today. Only two weeks after its launch, Dogecoin’s daily transactions surpassed Bitcoin’s, and within the first month, there were more than one million visitors to its website. Despite its status, Dogecoin has built a passionate community around it, which has been behind many charitable initiatives.
What is Dogecoin’s proposed network upgrade all about?
The DogeOS team presented a proposal known as OP_CHECKZKP, which would enable zk-rollups – a type of layer-2 scaling network – and introduce zero-knowledge proofs. The purpose of this upgrade is to enhance decentralization, security, and scalability for the Dogecoin network. With the implementation of this proposal, Dogecoin would become a powerful base layer rather than remaining a simple payments chain, resulting in increased developer activity.
Thanks to this upgrade, developers will have the opportunity to launch scalable apps and games, as well as DeFi protocols settling back to DOGE. If the implementation is successful, it will result in bridging, zk-rollups, and new use cases that were previously impossible.
What would the proposal change?
One of the most notable benefits of Dogecoin’s network upgrade is bolstering privacy. This would happen due to zero-knowledge proof, which is essentially a way of demonstrating something is true without directly revealing the information. Furthermore, zk-rollups would enable the creation of Dogecoin layer-2 scaling networks – something unique in the history of the meme coin.
In that scenario, Dogecoin would compete with smart contract platforms like Solana and Ethereum, marking a significant shift in the cryptocurrency landscape. Developers will benefit the most from this upgrade, as it is currently challenging to launch a DOGE-themed NFT game. To be able to do so, you are required to use separate side-chains or leave Dogecoin entirely. However, OP_CHECKZKP would make it possible for the projects to exist within a unified Dogecoin ecosystem while inheriting the viral marketing power of the brand. According to DogeOS, hundreds of teams are already excited about the proposal and its capabilities.
Notably, the DogeOS team is creating an EVM-compatible layer-2 network, referred to as an app layer for the meme coin. This upgrade is necessary to create Layer 2 networks on Dogecoin, and for everyday holders, it translates into lower fees and quicker confirmation. However, it’s worth noting that this is only the beginning for upgrading Dogecoin’s network. As the meme coin lacks a formal on-chain governance process, the proposal will have to go through a series of community discussions, contributor technical reviews, as well as testing. Then, it will be deployed on the testnet as security audits start, and as soon as everyone is happy with the final result, Dogecoin miners will be ready to process the soft fork upgrade.
How will the upgrade impact Dogecoin’s value?
Upgrades are always exciting in the crypto space, because they have an impact on the value of an asset. For Dogecoin, the network proposal could translate into improved market performance, unlocking the floodgates for institutional investment and strengthening its credibility with mainstream investors. This would serve as a major bullish catalyst, not to mention that Dogecoin has a 90% chance of securing a spot ETF approval by the end of the year, which further adds to the momentum.
Dogecoin is also showing strength from a charting perspective, as it is now bouncing off its 200-week EMA, representing a long-term moving average that has been a launchpad for significant rallies throughout history. Notably, the rebound is occurring at a long-standing upward trendline— a level that led to a 400% price surge last December. If this setup leads to a similar breakout, Dogecoin could reclaim its all-time highs and even surpass the $0.73 mark.
A word of caution: nothing is certain when it comes to the future of cryptocurrencies, so it’s essential to keep this in mind and be strategic about the actions you take. Before buying Dogecoin, it’s essential to consider your investment goals and risk tolerance, as this will help you decide whether or not it’s worth adding it to your portfolio. While the network upgrade is promising and could change Dogecoin’s status forever, it’s essential to be prepared for any kind of scenario and mitigate potential risks.
Takeaway
Dogecoin’s journey so far has been very interesting. Although the project initially started as a parody of crypto assets, it has garnered widespread attention and achieved significant market capitalization. However, due to its meme coin status, it has been carried on the back of the broader cryptocurrency market, with many investors hesitant to buy it. But the OP_CHECKZKP could transform its network, and remove Dogecoin’s meme status, adding to its appeal. If you’re interested in how things will unfold for the pioneering meme coin, be sure to stay up to date with the latest news.
