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Dogecoin value improves thanks to Elon Musk

Dogecoin climbs higher after Elon Musk's Twitter purchase
Dogecoin climbs higher after Elon Musk's Twitter purchase

Image source: Fox Business

Dogecoin is thriving better than ever after Elon Musk took over Twitter, helping the coin get out of crypto winter.

The coin is selling for $0.12 as of this writing.

Dogecoin rally

The meme coin had a long rally when the wealthiest man in the world finally bought the popular social media platform.

Earlier this week, Dogecoin’s value briefly doubled to 14 cents.

Elon Musk’s influence on the cryptocurrency has been going on for years, but the coin finally overshadowed prices last seen in May.

Although Musk didn’t mention Dogecoin after the Twitter purchase, he did reply to Billy Markus on Twitter, one of the developers behind the meme coin.

Over the past week, Dogecoin’s value has grown exponentially.

The meme coin has gone from $8.1 billion to $16,630,929,389 (at the time of this writing).

Dogecoin has overtaken coins like Cardano and Solana to become the 8th largest cryptocurrency by market cap.

Read also: General Motors plans to stop advertising on Twitter

Crypto exchanges

The cryptocurrency has seen substantial volume on major cryptocurrency exchanges over the past few days.

It is currently the third most traded token on Coinbase, accounting for 14% of the exchange’s total trading volume.

Meanwhile, trading between stablecoin Tether and Dogecoin generated $1.8 billion on Binance in the past 24 hours.

It represents 10% of the total trading volume of the exchange.

Additionally, the meme coin and Binance USD trading exceeded $900 million, representing 5% of the exchange’s total trading volume.

Coin movement

Despite the rally, Dogecoin is still down 84% from its all-time high of 73 cents in May last year.

That day, Elon Musk was a guest host on Saturday Night Live.

Upon his appearance, the coin plunged 35% as he dubbed it the future of currency but also referred to it as a hustle.

Read also: Tesla Sells 75% of Its Bitcoins but Leaves Dogecoins Untouched According to Musk and Q2 Earnings Report

Musk and Dogecoin

Dogecoin’s growing popularity can be partly attributed to Musk’s multi-year relationship with the meme coin.

In the past, he referred to the coin in several tweets.

Musk would later add Dogecoin as a means of payment for some of the products and services offered by his companies.

Some Tesla products are available for sale with Dogecoin on the company’s website.

Additionally, The Boring Company is taking cryptocurrency as payment for its Las Vegas Loop.

In April, Elon Musk announced plans to allow Twitter users to use Dogecoin to pay for Twitter Blue, the platform’s premium subscription service.

The Tesla founder’s fondness for Dogecoin dates back to 2019 when he tweeted:

“Dogecoin may be my fav [sic] cryptocurrency.”

From there, he would share memes about the play.

However, not everyone believes that Musk supported the coin in good faith.

In June, a $258 billion lawsuit hit Musk, SpaceX and Tesla.

The lawsuit alleged that Elon Musk pumped the cryptocurrency.

Besides Dogecoin, Musk’s acquisition has also impacted dog-themed coins like Shiba Inu and Dogechain, which are up 19% and 100% this week.


Dogecoin leaps 94% in weekly gains following Elon Musk’s Twitter acquisition

Opinions expressed by Market Daily contributors are their own.