Does a Dogecoin-Cardano alliance make sense for both cryptos?

Thanks to Elon Musk’s acquisition of Twitter, dogecoin is suddenly one of the hottest cryptocurrencies. This Musk favorite has already gone up over 100% in the last seven days, and speculation continues to mount that Twitter will somehow integrate Dogecoin into its platform as a payment option. payment. Given all the buzz surrounding Twitter and Dogecoin, it’s perhaps no surprise that some cryptocurrencies are now trying to partner with Dogecoin.

Over the weekend, Cardano co-founder Charles Hoskinson tweeted out a poll asking his followers if he should pitch a Cardano-Dogecoin alliance to Twitter. Such an alliance would require Dogecoin to migrate from its network to the Cardano blockchain, which is superior to Dogecoin.

If the survey response is overwhelmingly positive, Charles Hoskinson said he would develop a proposal for “an ultra-fast post-quantum blockchain allowing the identification of Dogecoin on Cardano, specially designed for social networks“. Is this such a crazy idea that it could work?

Dogecoin is hot, Cardano is not.

One way to interpret this proposition is that Cardano is making a last ditch attempt to stay relevant. The price of the cryptocurrency has fallen almost 80% in the past 12 months, and there are now very serious fears that it could break below $0.30 after trading in the 0 range. .50 to $0.60 for most of the last six months. The recent surge in Dogecoin propelled it ahead of Cardano in terms of market capitalization. Additionally, the market response to Cardano’s big tech upgrade in September (Vasil hard fork) has been a “meh“collective.

As the Cardano summit to be held at the end of the month approaches, Hoskinson could make a desperate move to integrate Dogecoin as a sidechain in order to have positive talking points for Cardano devotees.

From this perspective, a Dogecoin-Cardano alliance would help Cardano but offer little to no value for Dogecoin. It seems odd that Cardano – a crypto known for its cautious and academic approach to blockchain development – ​​is suddenly courting a dumb mimetic coin.

Cardano is hot, Dogecoin is not.

But let’s reverse the scenario. It could be that Cardano is throwing Dogecoin a lifeline, and Cardano actually has the upper hand. It has a much faster and more robust proof-of-stake blockchain capable of handling smart contracts, non-fungible tokens (NFTs), decentralized applications, and decentralized financial protocols. In contrast, Dogecoin still operates a relatively slow proof-of-work blockchain that is in dire need of an upgrade to proof-of-stake. Cardano therefore clearly has the best blockchain.

While it’s unclear exactly how long or expensive the Dogecoin sidechain integration might take, Mr. Hoskinson said he would do the integration for free. Chances are Twitter is currently overwhelmed with content moderation and other related issues, and won’t have time to consider a Dogecoin integration until 2023 at the earliest.

From this perspective, Cardano is doing Twitter a favor by keeping a popular meme currency afloat. A Dogecoin-Cardano alliance could help Dogecoin considerably, but bring little or no value to Cardano.

A win-win deal for Cardano and Dogecoin

One of the hashtags used by Charles Hoskinson to describe the proposed Dogecoin alliance is #QuantumDoge. This suggests an outcome where Dogecoin gets all the features it has been missing for so long and takes a quantum leap into the future.

Yes, Dogecoin would have to adapt to its new Cardano sidechain status, but in return it would gain features like smart contracts and NFTs. In short, Dogecoin would become a token on the Cardano blockchain, rather than a coin with its own blockchain. In doing so, it would turn into #QuantumDoge.

From this very optimistic perspective, the Dogecoin-Cardano alliance is as close to a merger of equals as it gets in the crypto world. In terms of market capitalization, the two currencies are almost exactly equal.

Through this alliance, Dogecoin would consolidate some of its weaknesses, while Cardano would have the kind of benchmark blockchain project it was looking for to attract more users and developers to its blockchain ecosystem. If Twitter then partners with a Cardano-Dogecoin combination, it will create even more value.

How will Twitter react?

So far, 80% of Twitter respondents have overwhelmingly voted in favor of integrating the Dogecoin sidechain. So it looks like Charles Hoskinson could actually convince Twitter of the proposed alliance.

Will Elon Musk prefer to focus on his own Dogecoin integration, or will he find Cardano’s offer more compelling? If you’re a Cardano investor, you better hope that Hoskinson can present Musk (aka “The Dogefather”) with an offer he can’t refuse. This may be the only way to drive up the price of Cardano in 2023.

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