After Elon Musk closed the $44 billion Twitter deal last week, the price of Dogecoin doubled. On October 27, it was selling at roughly $0.07 when Musk announced his ownership but it significantly rose to $0.16 five days later, according to a report by Reuters.
Although the value is still below one dollar, this is still a piece of good news for the volatile crypto sector since it provided a market value of $21 billion, according to analytics platform CoinGecko.
"Lucrative Form of Speculation"
According to Matthew Dibb, chief operating officer of Singapore-based cryptocurrency investment management Stack Funds, trading dogecoin around Elon Musk tweets has turned into a "lucrative form of speculation."
Reuters noted that Dogecoin has grown significantly after its humorous launch by two software programmers in 2013. The coin's price unexpectedly increased by almost 4,000% in 2021 as a result of Musk's tweets promoting it, including one post that hailed it as "the people's crypto".
Investor bets that Musk will integrate doge into the platform's payment system, according to cryptocurrency analysts, were the primary driver of the most recent price increase, which came after the Twitter deal.
The meme coin reached a record high of $0.63 in May of last year, but it has since fallen along with other well-known crypto assets like bitcoin and ether due to macro-doom and investor indifference to hazardous markets, as per Reuters.
Despite this, the 150 digital assets in the CoinDesk Market Index's best performance list for October was doge, according to the cryptocurrency market news website Coindesk.
Doge's Market Share
CoinMarketCap noted that doge's market share of the $1 trillion worldwide cryptocurrency market value from the beginning of the year through the end of October was merely 1%, a small percentage compared to bitcoin's 39%.
As of now, it stands at 1.58%.
Doge has led to the rise of several dog-themed coins, most notably Shiba Inu, which shares the same motif as doge and is made to work with the Ethereum network. Shib, which is only worth $0.00001, increased by a third in the days following Musk's completion of the Twitter transaction.
Musk's tweet from last week featuring a photo of the Shiba Inu puppy sporting a Twitter t-shirt sparked speculation that the company may one day permit cryptocurrency payments using the meme coins.
The early gain, however, has slowed since many cryptocurrency investors are uncertain about his level of commitment to dogecoin.
For instance, in May of last year, Musk referred to dogecoin as a "hustle" on a talk show, which caused the price of the crypto to drop.
Tesla also began taking dogecoin as payment for its products, including the "Giga Texas" belt buckles and miniature electric vehicles earlier this year.
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This article is owned by Tech Times
Written by Jace Dela Cruz
