The cryptocurrency Dogecoin caused a sensation in the last bull market. Billionaire Elon Musk came out as a big fan of DOGE on social networks. He showed his “love” for the meme sign via Twitter with many tweets and pictures.
He was able to create a real hype about the fun currency, which was once created as a parody of Bitcoin. Other famous people joined and presented themselves as Doge fans on the networks. The hype then spread further when the new cryptocurrency Shiba Inu, itself a Dogecoin clone, became more and more buyers.
DOGE’s purchase yielded a 50,000 percent return in 2021
The prices of both meme tokens could literally explode due to the hype. At the beginning of May 2021, DOGE reached a peak price of just under $0.74. Within a little more than a year, the price rose more than 50,000 percent. With an investment of just $100, buyers who bought DOGE in May 2020 could see a return of $50,000 if they sold the cryptocurrency at the high point.
However, not everyone was as enthusiastic about this rally as Elon Musk and DOGE buyers. Many investors, especially Bitcoin buyers, refer to DOGE as a shitcoin because it has no intrinsic value and there is no clear use case where using DOGE makes sense.
Doge Elon Musk’s followers are angering the markets
But that’s not all. Elon Musk has been accused of market manipulation because he influences prices through his tweets. Musk heard this allegation several times and even the financial supervisory authority SEC took on the billionaire.
The truth is, without Elon Musk’s help, DOGE would probably never have experienced the hype it has seen in 2021. Some now believe that Musk’s influence is so great that he alone can decide when there is another pump there for Dogecoin course.
Twitter Deal: A new pump for Dogecoin
This claim appears to be unfounded, as was also demonstrated in October/November 2022. After learning that the long story was over and that Elon Musk would be the new owner of Twitter, many Dogecoin investors were once again in a frenzy.
Because there were high expectations that cryptocurrencies could play a role in Musk’s future takeover of Twitter. After all, Musk’s company Tesla had bought Bitcoin for 1.5 billion dollars at times. In addition, the purchase of Tesla merchandise with DOGE was offered as a payment method.
Would you like to add Elon Musk $DOGE (crypto) payments to Twitter?
— CEO (@Investments_CEO) January 23, 2023
Rumor: DOGE as a payment method on Twitter
Rumors quickly emerged that Musk would now make DOGE the official payment method on Twitter. Because Musk previously announced that he wanted to change some things on Twitter. One idea that was also implemented was that users should pay for a blue verification check on their user account in the future.
With approximately 240 million daily active users on Twitter worldwide, there is huge potential for new payment methods. If DOGE were in fact Twitter’s cryptocurrency, this would greatly advance the status of Dogecoin and the path towards mass adoption.
Musk is losing fame and money at a record pace
However, as is well known, workhorse Dogecoin has completely different problems. The Twitter deal, which Musk initially wanted to back out of, has had a very positive impact on the billionaire’s image so far. Whether it’s waves of layoffs, unpaid rent payments, adjustments to Twitter that didn’t go down well with the public, or statements in the media that were viewed negatively – Musk seems to have lost his good business sense at the moment.
According to a report by Forbes, Musk is said to have lost up to $220 billion within a year – an unheard of world record. Because even with Musk’s actual boss, the car manufacturer Tesla, things have been smooth lately. He is currently responding to tweets in court, where he stated at the time that he supported delisting. However, according to the prosecution, this did not match the facts.
DOGE and Tesla’s affairs completely crashed
Tesla stock has sometimes fallen 75 percent from record highs and is still 66 percent lower than its all-time high. But Dogecoin’s course seems to be suffering from Elon Musk’s missteps as well. Does this put the former Dogecoin hero at the greatest risk?
At least the DOGE chart makes it clear that there isn’t much left of the hype surrounding the Twitter deal. From just under $0.16 on November 1, 2022, the price temporarily dropped to $0.06. A drop of almost 60 percent.
Currently, the DOGE course has improved slightly and is quoted at $0.084 at the time of publication. However, figures from coincodex.com also show that the cryptocurrency is currently developing much weaker than many other tokens.
Dogecoin weaker than Bitcoin
In 2023, the price has risen 20 percent so far. That sounds pretty impressive. However, the numbers pale in comparison to trends for many other stocks this year. The price of Bitcoin has almost doubled in the same period. Some altcoins even rose three or four times as much as DOGE.
This means that DOGE is not one of the best investments in the crypto market right now and is still nearly 90 percent below its all-time high from 2021.
The DOGE example shows that it can also be harmful to a cryptocurrency if it reacts essentially to the actions of a single person. Musk’s future business decisions may have further implications for Dogecoin’s price.
Will DOGE rise to 19 cents in 2023?
If the entrepreneur manages to partially restore his once great reputation and focus on his business, the DOGE course could also benefit from this. Any more bad news about Elon Musk could lead to further altcoin price correction.
However, the analysts at Digital Coin Price are confident that the price of DOGE can still rise to 19 cents this year. That would be more than double the current level and DOGE’s purchase would make a worthwhile investment for 2023.
Get the fight out sign in the presale
The new cryptocurrency Fight Out is dedicated to the megatrend of the Metaverse. The fitness market is to be anchored in virtual space. For this purpose, the developers work together with experts from the fitness platform. FGHT, the platform’s native token, can currently be purchased for $0.01714.