The world’s most famous meme coin started off the year with the right foot. Dogecoin jumped in price going from $0,68 to $0,71 in the span of 24 hours.
The reasoning behind that jump can be explained by the announcement of a new developer fund. The Dogecoin Foundation invested 5 million DOGE ($362,713) in the ecosystem’s growth, on December 31st.
The fund, named “Dogecoin Core”, will remain in a new multi-signature wallet administered by its members. Any major decision involving the initiative will require three out of five signatures from Dogecoin Core’s main developers. Apart from supervising the release, these custodians will have no rights to the funds.
Dogecoin Moving To Staking Mechanism?
The developing team behind dogecoin also recently denied the growing rumors that the meme coin would transition to a proof-of-stake mechanism.
On Twitter, Dogecoin Core developer Michi Lumin emphasized:
“People need to understand how changes work in a blockchain like dogecoin, which is closer to older Bitcoin technology than say, modern ERC20 tokens,” The developer wrote. “It is not possible for, nor is it planned for, an individual, organization, or body to move or shift or change dogecoin to PoS.”
This means that doge will remain under the proof-of-work mechanism. Since Ethereum shifted its validation mechanism, dogecoin became the second-largest proof-of-work coin in the world, only behind bitcoin.
Dogecoin Chart Performance
The Twitter purchase by Elon Musk resulted in major upward momentum for the world’s favorite meme coin. On November 1st, Doge reached $0,14, a level the token had not seen since March.
However, the FTX crisis also affected dogecoin. The collapse of the crypto exchange sent the token down to the $0,70 level, and aside from a couple of weeks between November and December, doge remains at that zone.
In fact, doge returned to the seventy cents margin on December 17. Throughout the months, this resistance line proved to consistently hold the price. With the SEC’s interest raise decreasing in 2023, it is not unfeasible to think that dogecoin will return to close to a dollar in 2023’s first half.