Dogecoin, the parody cryptocurrency that Elon Musk helped propel to stardom, has gotten a boost from his purchase of Twitter. After the Tesla billionaire sealed the $44 billion deal, the value of dogecoin doubled. On October 27th, when Musk tweeted “the bird is liberated” to reveal his ownership, the stock was trading for roughly $0.07. After five days, it dropped to $0.16.
While that may not seem like much, data platform CoinGecko reports that it pushed the market value of the extremely volatile cryptocurrency over $21 billion. Not bad for a token named after a Shiba Inu internet meme that was originally intended as a satire of irrational trading in the cryptocurrency market.
According to Matthew Dibb, COO of Singapore-based crypto investment management Stack Funds, “trading dogecoin around Elon tweets has become a lucrative kind of speculation.” Since its humorous launch by two software developers in 2013, Musk has had a significant influence on dogecoin’s meteoric rise. Because of his tweets praising the coin and even dubbing it the “people’s crypto,” its value increased by almost 400% in 2021.
Investors’ hopes that Musk might integrate doge into Twitter’s payment system fueled the most recent price increase, according to cryptocurrency market observers. Many people believe that Twitter can serve as a “test bed” for the widespread acceptance and exploration of doge’s many potential applications, as Dibb pointed out.
Dogecoin has subsequently given up some of its gains and is currently trading at around $0.12, making it the eighth largest cryptocurrency by market cap, with a valuation of around $16 billion as of writing on CoinGecko. Meme coin’s price peaked at $0.63 in May of last year, but macro gloom and investor apathy toward risky markets have since smashed it, along with other major cryptocurrencies like bitcoin and ether. Doge is still down 57% in the past year, even after the recent surge.
Cryptocurrency market news site Coindesk, however, said in October that doge’s double price made it the best performance among 150 digital assets in its CoinDesk Market Index. According to CoinMarketCap, its portion of the global crypto market cap was 1% as of the end of October, a much smaller percentage than bitcoin’s 39%. It is currently at 1.58%.
— Sir Doge of the Coin ⚔️ (@dogeofficialceo) November 3, 2022
Doge has paved the way for a slew of other canine-themed cryptocurrencies, most notably Shiba Inu, which shares doge’s focus on the Japanese shiba inu breed and is also built for use on the Ethereum blockchain. Shib’s price, which normally trades at $0.00001, increased by a third in the days following Musk’s Twitter transaction closure. Doge and shib, in contrast to bitcoin, have nearly infinite quantities, so it would require more than just speculative stockpiling to drive their prices up.
Last week, Musk tweeted a photo of his Shiba Inu dog dressed in a Twitter T-shirt, sparking rumors that he would eventually enable dog tokens to be used as payment in his cryptocurrency ecosystem. Despite this, the initial gain has since stopped, leaving many crypto investors confused as to whether or not he is indeed serious about dogecoin.
— Elon Musk (@elonmusk) November 1, 2022
For example, in May of last year, the price of dogecoin plummeted after the richest man in the world, Elon Musk, dubbed it a “hustle” on a talk show. Soon after, in January of this year, dogecoin became a valid form of payment for a selection of Tesla’s wares, like “Giga Texas” belt buckles and miniature versions of the company’s electric vehicles. Musk’s latest fragrance, “Burnt Hair,” may be purchased using doge.
Dogecoin, the parody cryptocurrency that Elon Musk helped propel to stardom, has gotten a boost from his purchase of Twitter. After the Tesla billionaire sealed the $44 billion deal, the value of dogecoin doubled. Please forward this information to your friends and family and continue to check Smartnewszone.com.