Dogecoin, the meme coin that gained fame thanks to Elon Musk’s interest, is supported by the Litecoin network through merged mining. This unique agreement proposed by Charlie Lee, the CEO of Litecoin, ensures the security of Dogecoin’s blockchain.
In 2014, Dogecoin faced a potential attack as it ran out of block rewards due to its rapid issuance. To address this, Charlie Lee proposed the merged mining deal, allowing Dogecoin to benefit from the security of Litecoin’s network. This move resulted in a significant increase of 1500% in Dogecoin’s hash rate and mining difficulty, thanks to the expanded operations of large mining pools.
Since then, Dogecoin’s hash rate has maintained a robust and positive correlation (0.95) with Litecoin’s. At one point, almost 90% of Dogecoin’s total hash rate was derived from large Litecoin mining pools, and the Dogecoin blockchain was processing around 30,000 transactions daily.
Interestingly, while Litecoin holds a more historic status as one of the early cryptocurrencies, it has a lower market cap than Dogecoin, which originated as a joke in 2013. Currently, LTC ranks 11th in the overall crypto rankings, with a market capitalization of over $6 billion. On the other hand, Dogecoin holds the eighth position, boasting a total market cap exceeding $10 billion.
Regarding their current prices, LTC is valued at $86.23, having decreased by 5.5% in the last week, while DOGE is priced at $0.073, experiencing a 7% drop in the past seven days
Elon Musk’s support has significantly contributed to Dogecoin’s popularity, making it a favorite among crypto enthusiasts. Meanwhile, rumors circulate about Musk’s new venture, X (Twitter), possibly integrating the buying and selling of cryptocurrencies like Bitcoin and Dogecoin. Though unconfirmed, Musk’s reputation for innovation and bold ideas intrigues this possibility
Moreover, his intentions with X extend beyond rebranding Twitter, as he aims to expand the social networking service into various domains, including the financial world. Considering Musk’s involvement in the crypto sphere, the integration of cryptocurrencies seems likely.
Notably, a study by CryptoBetting.com reveals that Dogecoin is among the most popular crypto assets in America, alongside Bitcoin and Shiba Inu. The report bases its findings on research volume data and compares assets across the top 100 cryptocurrencies by market cap.
Dogecoin’s partnership with Litecoin through merged mining has provided it the necessary security to thrive in the crypto space. While Litecoin has its place as one of the early digital currencies, Dogecoin’s support from high-profile figures like Elon Musk has catapulted its popularity. As the crypto world continues to evolve, Musk’s potential integration of cryptocurrencies on his new X platform adds excitement and possibilities to the market.