The price of Dogecoin rose by 126% in one week as a result of Elon Musk’s Twitter acquisition. The self-described “Dogefather” has frequently expressed his support for Dogecoin on social media.
The business tycoon and billionaire CEO of Tesla added yet another titan to his collection of purchases when he finalised his acquisition of Twitter last week. He paid $44 billion for the deal.
The price of Dogecoin rocketed from a low of $0.0629 to $0.14 DOGE within 7 days after the news of Musk’s Twitter acquisition broke.
Elon’s Support for Dogecoin: In the past, the world’s richest billionaire has made statements advocating for the digitization of Twitter payments as well as expressing his support for Dogecoin, the eighth-largest cryptocurrency by market capitalization.
Dogecoin’s ascent to prominence as the eighth-largest cryptocurrency by market valuation was fueled by Dogechain, a layer-2 scaling solution for Dogecoin, which recently unveiled its future roadmap. As soon as Dogechain began the voting process for its currency burn, DOGE holders began to feel positive.
Twitter’s possible crypto wallet: After the CEO of SpaceX 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 increase in April after Musk first suggested using dogecoin as a payment option for Twitter’s Blue membership service. In June, it experienced a sell-off as Musk attempted to back out of the purchase.
But after months of conflict over the sale between Musk and Twitter, all indications point to Musk and the meme coin, in part because the world’s richest man enjoys the meme currency.
The rise in dogecoin’s 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 did launch a tipping tool last year that enables users to donate creators’ bitcoin via the platform, Twitter has not yet released a cryptocurrency wallet product. Ethereum was integrated into Twitter’s tips feature in February.
There isn’t much anyone can do, unlike competing cryptocurrencies like ether that allow programmers to create applications on their platform to perform tasks like lend and borrowing money. The meme coin is valuable because other people think it is valuable and because they think someone else would pay more to buy it from them.
