The Dogecoin trend is clearly rising. With the meme base gaining more than 30 percent year-to-date, Musk’s plans to integrate a payment feature on Twitter are taking shape, raising the prospect of another DOGE outbreak. Will the billionaire crypto enthusiast take the coin meme to new heights?
All important at a glance
- Once again, Musk is raising the price of his self-proclaimed favorite coin
- Twitter applies for software development licenses in the United States to process payments
- Rumors of a planned payment infrastructure, including a wallet-like storage option, are doing the rounds
- Twitter is struggling with financial problems, which will soon be a thing of the past as it transforms into an “everything” platform.
- Live encryption courses have already been implemented on social media
Since the man who, together with Tesla, has already taken on the messaging service SpaceX and The Boring Company, there have been repeated speculations about the integration of crypto and new payment models for account holders. Musk himself had fueled the rumors many times, for example by sending out clearly ambiguous tweets regarding DOGE. At the same time, the Tamadoge community interpreted the post in their favor.
— Elon Musk (@elonmusk) November 1, 2022
As early as 2021, during the ongoing bull market, Musk moved prices on the crypto market with his public statements and tweets. Recently, however, the Twitter boss has been reluctant to influence cryptographic values. Except for Dogecoin.
The meme coin is, so to speak, under the protection of the richest man in the world. Musk has repeatedly expressed that he sees more potential in DOGE than in Bitcoin. As the billionaire reported the upcoming short messaging service mount, significant fluctuations in Dogecoin prices continued, fueling speculation about Dogecoin payments on Twitter.
Twitter on the way to become the “everything app” à la WeChat?
The fact that Musk is standing on the accelerator as a new owner in the restructuring of the social network is less because of his status as a visionary and more because of the financial crisis in which the company is. After losing some well-known and financially strong advertising customers, the whole procedure is easier to understand. The situation has become even more threatening since the change of ownership.
The fact that South Africa is considering payment services shouldn’t surprise anyone either. After all, the online payment provider PayPal, which he founded, has become the market leader in this area.
The solution envisioned by the founder and successful entrepreneur seems to be to make the short messaging service an “everything app”, as Musk himself says. Such a development is quite possible and can be successful, as WeChat, the Chinese messenger service, has already proven.
Putting aside the fact that WeChat is completely under Beijing’s control, the service has evolved in a significant way. Today, the network offers integrated online stores, payment services, job searches, local service booking and an online identification option.
As reported by the Financial Times, Twitter Inc. recent application for a license as a payment service provider in the US. According to the report, the headquarters in San Francisco is already working on integrating the relevant functions. For example, it may soon be possible for account holders to transfer money to each other.
According to the journalists’ research, the proposed payment functions should focus on fiat currencies first. The plans to make the app an application for all walks of life are intended to increase sales – to heroine. Therefore, the focus is on ensuring that new functions are attractive to a wide audience and attract new customers.
DOGE whales show high activity
The most famous dog coin network shows a very high level of activity. Year-to-date performance, measured against the overall market, is not exceptional at all and is slightly below many altcoins. However, data from the analytics platform Santiment shows that interest in the token remains at a high level.
In a tweet on Tuesday of this week, the experts also pointed out two special features that should be of interest only to supporters of the coin. On the one hand, Santiment’s analysis shows that the network has more active participants, with more than 86,000 DOGE launches every day, than it has had since November 2022.
🐶 #dogecoin broke out with big whale transactions today, easily the highest of the year, accompanied by a sprinkling of sailing activity. The polarizing coin is up +40% since December 29th, and is back above $0.095 for the first time since December 10th. https://t.co/NjeLyhFKe2 pic.twitter.com/AWEOtqD1ax
— Santiment (@santimentfeed) January 31, 2023
On the other hand, the experts used data on chain to show that there are currently more than 500 transactions per day, each with a volume of at least 100,000 US dollars. The number and volume of transactions shows that whales (big investors) are very active.
The two insights, brought to light by the analysis, can be understood as signals for a possible price rally. But even less optimistic investors could at least conclude from the aforementioned indicators that Dogecoin was able to recover from the consequences of the FTX disaster.
Dogecoin is also the ninth largest cryptocurrency with a market capitalization of around $13 billion. It therefore plays in the Polygon or Cardano series, occupying the place above or below. Therefore the crypto project, which started as a pastiche, is very relevant to the market simply because of its size.
Given that Musk and Twitter currently hold the key that could give DOGE access to a huge market, speculation is understandably fueled about Twitter’s potential new cryptocurrency.
What generally applies to cryptocurrencies is and will continue to be valid for Dogecoin: the coins are objects of speculation. Prices are volatile and can make huge moves not just from a fundamental change, but from a single tweet.
Of course, it’s up to the investor to weigh the opportunities and risks, but regardless, it’s good news that the world’s richest person is a crypto enthusiast and it reflects the exciting times we live in.