He finally said yes. Elon Musk takes control of the social media platform Twitter after months of back and forth. Crypto advocates are now looking forward to using crypto tools on the platform. Once again, Dogecoin lover Musk is giving the meme base a boost.
A clear winner of the DOGE Award
The price of Dogecoin is up more than 50 percent over the weekend. On a weekly basis, according to CoinGecko, the increase is even 94 percent. The coin is currently at 11 cents.
After learning that the electric car tycoon Twitter actually bought it, the DOGE reached almost USD 0.15 on Saturday. With that, the meme base gained 50 percent this weekend, hitting its 5-month high.
Musk memes and retweets are proliferating on crypto-Twitter, where profile pictures are being turned into laser eyes to signal support for cryptocurrencies. It is a new thing that this has repeatedly brought to DOGE’s attention. Many tweets from the billionaire sent the Dogecoin course, literally at least “to the moon”.
No one believed that the founder of Tesla and the new owner of Twitter would give such prices for the coin. We have not seen this price level since May this year. Incidentally, Musk himself has not mentioned the coin once since Musk’s $44 billion purchase was completed. Even one tweet on the subject could explode the course.
However, it should also be noted that despite the euphoria, the Dogecoin is still a good 84% below its all-time high of 73 cents as of May 2021. The unique history of Musk and Dogecoin has helped the popularity of the coin more than the prices themselves, at least so far.
Dogecoin market cap and trading volume
Over the past week, the total value of Dogecoin has increased from about $8.1 billion to $15.9 billion, according to CoinGecko. Coins like Cardano or Solana are left behind. Launched as a hoax, DOGE is now the eighth largest cryptocurrency by market cap.
The instant development of the major cryptocurrency exchanges is also significant. With $302 million in trading volume in the past 24 hours, Dogecoin is the third most traded token on Coinbase, accounting for more than 14% of the crypto exchange’s total trading volume.
On Binance, the world’s largest crypto exchange, Tether and DOGE trades totaled $1.8 billion in the past 24 hours, accounting for 10% of the exchange’s total trading volume. The trade volume between Dogecoin and Binance USD, Binance stable, exceeded $900 million, which is 5% of the exchange’s total trade volume.
It’s clear that Musk’s Twitter deal ending had an impact on other “dog” coins as well. Therefore, the DOGE Shiba Inu and Dogechain rose at the weekend, so that these rose by 19 percent and in the case of Dogechain by a whopping 100 percent.
The upswing in the crypto market continues. Positive movements can be observed, affecting not only the main currency Bitcoin and the number two Ethereum, but also the second and third tier of cryptocurrencies.
The relationship between Musk and Dogecoin
The rise in awareness of Dogecoin is no doubt due to the interesting relationship between Musk and the token. The current Twitter boss has repeatedly referred to the token as a means of payment for products and services from Musk’s company in tweets. An example is his perfume, called “Burnt Hair” and the famous flame called “Not-a-Flamethrower”.
Some Tesla products can also be paid for with Dogecoin in the car manufacturer’s online store. And if you use the Las Vegas Loop to avoid the traffic jam in the desert city, the DOGE is also available as a payment option.
It is this integration of the Dogecoin into Musk’s corporate universe that makes his comments on the token more than side reports. His love for cryptocurrency dates back to 2019. Again visiting Twitter, now owned by Musk, he revealed the following at the time:
Dogecoin might be my favorite cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Tweets like this later led to Musk, SpaceX and Tesla being sued for $258 billion. Musk manipulated the affairs of Dogecoin with his statements and used his company’s network to build a pyramid scheme for Dogecoin. The outcome of this lawsuit, which some investors have since joined, is still open.
Given the history of Musk, Twitter, and DOGE, it is understandable that crypto investors are more inclined to believe in incorporating more cryptocurrencies into the Twitter platform. As a big fan of crypto, the former CEO, Jack Dorsey, built up a crypto division and invested in the development of decentralized social media with Bluesky.
Dorsey, who is considered to be a confidant of Musk, left Twitter to focus on his own project, whose goal is called Decentralized Social Media.
And Twitter itself rolled out ether tips, anti-counterfeit voucher profile pictures, and USD coin payments and conflicts to a select group of creators after Dorsey’s departure in November 2021.
Musk, Twitter, Doge – what’s next?
It’s very hard to predict how such efforts will continue now that Musk is at the helm of Twitter. After all, the CEO of Tesla will not only prove his erratic nature in his statements on cryptocurrencies. He’s touting Dogecoin so fanatically that he’s been called the “Dogefather,” and then on Saturday Night Live he’s calling the coin a “ripoff.”
If the richest man in the world decides to give more space to cryptocurrencies on Twitter, there are great ways to do that. Examples of positive uses would be killing spam accounts with fake crypto giveaways, using blockchain to fight bots and verifying the identity of Twitter users to encourage real-name profiles on Twitter.
Regardless of one’s view of Musk as a personality and entrepreneur, all crypto investors should wake up. Anyone who is convinced that crypto and blockchain solutions belong to the future can only be more excited to see what happens next.
Even those who want a decentralized social media, free from political influence and also free from the influence of its owner, will not be given a gift right now. Because two great people Musk and Dorsey are working on this dream in two different ways, we have more confidence.