Following the Elon Musk of Elon Musk’s acquisition of Twitter, the price of the Dogecoin has gone up. According to Coinmarketcap, Dogecoin’s price rose nearly 75% to $0.1505 yesterday, its biggest one-day gain since the 2021 April.
The price trend of dogecoin. Source: Coinmarketcap
The total price of Dogecoin rose nearly 150% from May 25 to May 29, reflecting a generally bullish trend among investors. At the same time, the number of Dogecoin transactions has also increased significantly, the number of transactions over 100,000 dollars has increased significantly.
The whale trade in dogecoin. Source: Santiment
- Hong Kong Issues Policy Declaration on virtual asset development
- Dubai, the Web 3 capital of the desert
- 30% apple tax on NFT
At press time, the price of the Dogecoin was about $0.1157, up about 92% from a week ago after the correction. In terms of market size alone, the Dogecoin has surpassed Cardano’s native token Ada to become the world’s sixth largest virtual currency.
The rise in the Dogecoin also boosted the entire memecoin division. Shiba Inu, the second-largest Memecoin by market size after the Dogecoin, is up about 53% since May 25. According to Coinmarketcap, the MEMECOIN market is up all the way, with related memecoin gains of more than 10% in July.
So why is Musk’s acquisition of Twitter seen by the market as such a boon for the Dogecoin?
The relationship between Musk and Dogecoin
Many people call Musk the”Godfather” of dogecoin because Elon Musk himself is very close to dogecoin. Musk’s Tesla has accepted dogecoin as a means of payment, and his SpaceX company has named one of its satellites DOGE-1, meaning doggy one.
Elon Musk himself has repeatedly called out for the odd dog in the past. He called himself”The father of dogecoin” while appearing on Saturday Night Live, an American comedy phenomenon, and jokingly called the coin”A hoax.” Lead to dogecoin dropped on the news. On top of that, Musk has repeatedly bid up his price on Twitter by shouting for one-dogecoin. This series of events shows that Elon Musk’s own behavior has shown a strong positive correlation with the price of dogecoin.
Elon Musk performs on Saturday Night Live. Source: YouTube
The price of Dogecoin has suffered since the start of the cryptocurrency bear market in May, and Musk’s influence over the currency has waned. But his recent acquisition of Twitter has sent the price of the Dogecoin higher, and investors are debating whether musk has a chance to get the dog into the Twitter ecosystem, twitter as a payment method?
Future uses of Dogecoin and other possibilities
For Charles Hoskinson, founder of the Cardano chain and co-founder of Ethereum, the integration of dogecoin and the Twitter ecosystem is entirely possible. “I think dogecoin will be incorporated into Twitter in some way,” Hoskinson wrote on Twitter on March 28. As a veteran of the encryption industry, Hoskinson’s words carry a lot of weight. At the same time, he even invited Dogecoin to join Cardano’s offshoot chain and mentioned that he would be willing to support dogecoin migration to Cardano for free.
However, the jury is still out on whether and how dogecoin will enter the Twitter ecosystem in the future. Media man David Gokhshtein said on Twitter that the Dogecoin would become Twitter’s”Official currency” and that”Musk would make the Dogecoin work in the Twitter ecosystem in some way”. Twitter user@aarnasays also thinks the dogecoin will eventually make its way to Twitter, boosting liquidity and”Preparing Twitter for the Web 3 economy.”
Earlier this year, Elon Musk mentioned dogecoin as a possible way to pay for Twitter Blue, a subscription service for Twitter, or to limit spam and bots. But after the acquisition, Elon Musk has yet to mention any clear plans for dogecoin.