SpaceX and Tesla CEO and founder, Elon Musk is recognized for his massive influence and impact on the crypto market. This was displayed once again on Tuesday when the market price of Dogecoin saw a surge after he made a supportive tweet.
Some months back, Elon Musk had earlier cut ties with the digital coin which caused a plunge in its value. But on Tuesday, 14th of December, 2021, Elon made a tweet supporting the digital coin once again. In the tweet, he announced that Tesla, his automobile company, would accept dogecoin as a payment method for some of its products. Since he made that tweet, dogecoin’s price had gone on the rise.
What is Dogecoin?
Dogecoin is a digital coin that was created in 2013. Doge was designed to be a friendly introduction to the crypto sphere. It was initially created as a joke digital coin to make fun of the crypto market silliness. However, Dogecoin went mainstream and became more of an altcoin to major coins like Ethereum and Bitcoin.
The symbol of DOGE is the Shiba Inu dog and became the face of the meme coin. No investors in the early years would have believed DoGE would become mainstream and valuable like it is today. Elon Musk, the wealthiest man in the world, actively supports the doge token and commands great influence on the digital coin. An example of such influence is what transpired on Tuesday.
Tesla to accept Dogecoin
Tuesday was a good day for plenty of dogecoin holders as Elon took to Twitter to announce that his company will accept dodge once again. Following the tweet, the digital coin soared up to 40% compared to Monday’s price level at 5 pm ET.
This surge in price is an indication that many investors buy into the idea of the meme coin having some real-life utility. The price of the dogecoin coin went from $0.16 to $0.22 before easing down to $0.20.
A surge of 40% in the crypto market right now is something great as digital coins have been largely bearish these past months. Even after Elin’s tweet, dogecoin is still much far away from its all-time high. Earlier this year, around the month of May to be precise, dodge reached its all-time high of 0.7376.
Compared to its present market price trading range of $0.20, dodge still has a lot of distance to cover. Hopefully, having a real-life utility will cause its eventual price surge.
Elon Musk Support for Cryptocurrencies
This won’t be the first time Elon Musk is supporting or using crypto as a payment method option. Elon Musk has experimented with Bitcoin and Dogecoin as a payment method option but pulled out along the line.
Back in August when Elon was actively supporting Dogecoin, several tweets were exchanged between him and Mark Cuban, the founder of The Boring Company. These tweets promoted dogecoin as the next big thing after Bitcoin. Experts suggest that dogecoin experienced a massive surge during this time with investors making a significant profit.
For his influence on Dogecoin, Elon was nicknamed the dog father within the Dogecoin community. However, Elon’s influence also backfired against dogecoin investors when he publicly supported Shiba Inu, a competitor of dogecoin.
Aside from dogecoin, Elon also experimented with bitcoin as a payment method option for his electric car company. However, he halted the whole operation citing Bitcoin’s volatility and continuous price decrease. Truly, Bitcoin has been quite volatile this year keeping investors on their toes.
Presently, Bitcoin is trading at around $47,000 at the bitcoin system trading site. Bitcoin initially reached an all-time high of $68,007 on the 9th of November, 2021 but took a nosedive since this peak.
From Elon’s tweet, it’s clear that people won’t be able to buy cars with dogecoin. Only a few pieces of merchandise will be put for sale. Presently, Elon seems bullish about dogecoin but if history is any guide, that could change completely as time goes.
Certainly, dogecoin is here to stay. A project created as a joke now has an established crypto community behind it. With Elon creating a real-life use case for this token, investors now wait for a major surge in price.
If Elon’s support remains unwavering, Dogecoin will eventually hit the $1 price mark which many investors have been hoping to see.