The price of Dogecoin rose 126% in one week as a result of Elon Musk’s purchase of Twitter. The self-described “Dogefather” has often voiced his support for Dogecoin on social media.
The business mogul and billionaire CEO of Tesla added another titan to his collection of acquisitions when he finalized his acquisition of Twitter last week. He paid $44 billion for the deal.
The price of Dogecoin rose from $0.0629 to $0.14 DOGE within 7 days after the news of Musk’s purchase was released on Twitter.
Elon’s support for Dogecoin: In the past, the world’s richest billionaire has made statements advocating the digitization of payments on Twitter, as well as expressing his support for Dogecoin, the eighth largest cryptocurrency by market capitalization.
Dogecoin’s rise to prominence as the eighth largest cryptocurrency by market cap was fueled by Dogechain, a Tier 2 scaling solution for Dogecoin, which recently unveiled its future roadmap. Once Dogechain started the voting process for its coin burn, DOGE holders started feeling positive.
Potential Twitter Crypto Wallet: After the SpaceX CEO on Wednesday updated his Twitter bio to “Chief of Twit,” Doge is up 126% for the week. In a similar vein, the meme currency experienced a price surge in April after Musk first suggested using dogecoin as a payment option for Twitter’s Blue membership service. In June, it experienced a selloff after Musk tried to back out of the purchase.
But after months of conflict over the sale between Musk and Twitter, all indications point to Musk and meme currency, in part because the world’s richest man enjoys meme currency.
Dogecoin’s rise in value also corresponds with claims that Twitter is developing a cryptocurrency wallet. Dogecoin is pronounced “doje coin” with a soft “g” sound.
Although the social media firm launched a tipping tool last year that allows users to donate bitcoins to creators through the platform, Twitter has yet to release a cryptocurrency wallet product. Ethereum was integrated into Twitter’s tips feature in February.
Not much anyone can do, unlike competing cryptocurrencies like ether that allow programmers to build apps on their platform to perform tasks such as borrowing and lending money. Meme currency is valuable because other people think it is valuable and because they think someone else would pay more to buy it from them.
