After Tesla CEO Elon Musk revealed his $3 billion stake on Twitter on Monday, the value of Dogecoin rose by 10%, showing just how influential the SpaceX founder was in the crypto markets.
According to CoinDesk, memecoin jumped from a price of $0.143 to more than $0.156 in the minutes after Musk announced his shares on Twitter.
Musk remains one of the most prominent crypto influencers, with his Tweets about popular currencies like Shiba Inu and Dogecoin sending crypto markets into a frenzy.
However, Dogecoin’s price spike may just be a reflection of how memecoin investors are so closely tied to the world’s richest person: “While there appears to be no direct connection between Elon Musk’s deal and Twitter with [Dogecoin] memecoin, the growth is a testament to the close relationship between Elon Musk and the many Dogecoin investors around,” Alexander Mamasidikov, co-founder of MinePlex mobile digital bank, told CoinDesk.
On Tuesday morning, Dogecoin’s price rose almost 8% to 16 cents.
“If Elon Musk is somehow driving the car in terms of communication, he’s going to take every opportunity to push DOGE forward,” Mati Greenspan, founder and CEO of Quantum Economics, told CoinDesk.
At the end of last year, Tesla’s Bitcoin holdings exceeded $2 billion. The electric vehicle maker began accepting Bitcoin as a payment method in 2021, only to drop support for the cryptocurrency over concerns about Bitcoin’s environmental footprint.
Musk has been a polarizing but influential figure in the Dogecoin community, with every Tweet sending the crypto markets spinning. Last June, he advocated lowering Dogecoin fees to make memecoin more competitive, and Dogecoin prices rose 22% when he took to Twitter last May to announce that he was improving system efficiency with Dogecoin developers.
