Dogecoin price has jumped about 27% following the news that Elon Musk has purchased Twitter for $44 billion. The billionaire has previously expressed his support for the memecoin on social media.
Dogecoin has been endorsed by the Tesla CEO in the past. Musk has even teased the idea that Dogecoin may be accepted as a form of payment for Tesla purchases sometime down the line.
Many Dogecoin owners are hopeful that Musk will continue to fuel the coin’s growth. Founded in 2013 as a joke coin, Dogecoin currently ranks as the 10th largest cryptocurrency by market capitalization.
Introduced as a “joke currency”, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014. Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined.
Dogecoin was created by Billy Markus from Portland, Oregon and Jackson Palmer from Sydney, Australia. Both wanted to create a fun cryptocurrency that will appeal beyond the core Bitcoin audience. Dogecoin is used as a tipping system on Reddit and Twitter where users tip each other for creating or sharing good content. The Dogecoin community is quite active in organizing fundraising activities for causes it deems deserving.
Fast-forward to recent times, Dogecoin has grown significantly and has gathered mainstream attention. It became a meme used by the Tesla billionaire, Elon Musk, and this inspired the growth of more meme projects in the cryptocurrency market.
In May 2021, Elon Musk’s posts fueled Dogecoin’s rally to its all-time high of 67 cents, per Coin Metrics. Around that time, Musk became something of a cryptocurrency-market mover with his increasing tweets about Dogecoin and bitcoin. “Elon has openly supported Dogecoin and previously talked favorably of this token,” Teong Hng, chief executive of Hong Kong-based crypto investment firm Satori Research, told Bloomberg. The “market is anticipating that he may incorporate Dogecoin as a payment system, hence this rally.”
In addition to being a Dogecoin influencer, Musk’s Tesla is one of the biggest corporate buyers of bitcoin. Those who hope to see Twitter integrate more crypto-native features will be keeping an eye on whether or how Musk prioritizes crypto. Bitcoin’s censorship-resistant nature on the surface aligns with Musk’s vision for a free-speech utopia.
Twitter, meanwhile, offers an option for users to tip creators in bitcoin. It’s possible that Musk will introduce the same feature for Dogecoin, a move that will most likely boost the price of Dogecoin. Twitter’s former CEO and co-founder, Jack Dorsey, stepped away from the company in November to focus more efforts at his payments company, Block (formerly Square), reflecting broader ambitions in cryptocurrency and blockchain technology.
Dogecoin followers have always been asking if Dogecoin would ever reach $1. It is hard to say where the price action will go but high volatility seems to be mainstay as the utility of the cryptocurrency remains unclear being a memecoin.
Dogecoin is available on centralized exchanges such as AAX, Binance, Crypto.com, Coinbase, Bitfinex, and more.
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