What is the impact of Musk’s acquisition of Twitter on Dogecoin?

The movement of Dogecoin

Following Elon Musk’s acquisition of Twitter, the price of Dogecoin has risen. According to Coinmarketcap data, on the 29th, the price of Dogecoin rose by nearly 75%, reaching $0.1505 at one point, which is also Dogecoin’s largest one-day increase since April 2021.

What is the impact of Musk's acquisition of Twitter on Dogecoin?

Dogecoin price trends. Source: Coinmarketcap

From the 25th to the 29th, the total price of Dogecoin rose by almost 150%, reflecting the general bullish trend of investors for Dogecoin. At the same time, the trading volume of Dogecoin has also increased significantly, with a large increase in the number of transactions over $100,000.

What is the impact of Musk's acquisition of Twitter on Dogecoin?

Dogecoin whale trading volume. Source: Santiment

At press time, the Dogecoin price is around $0.1157, up about 92% after the correction compared to a week ago. In terms of the total market alone, Dogecoin has surpassed Cardano’s native token ADA to become the sixth largest virtual currency in the world.

The rise of Dogecoin also led to the rise of the entire Memecoin branch. Shiba Inu, the second largest memecoin after Dogecoin, is up about 53% since the 25th. According to Coinmarketcap, the memecoin market has been rising all the way, and the related memecoin has risen by more than 10% in 7 days.

So why is Musk’s acquisition of Twitter seen by the market as such a boon for Dogecoin?

Musk’s relationship with Dogecoin

Many people call Musk the “godfather” of Dogecoin, because Elon Musk himself has a very close relationship with Dogecoin. Musk’s Tesla has accepted Dogecoin as a means of payment, and his SpaceX company has named one of its satellites DOGE-1, which means Dog-One.

Musk himself has shouted Dogecoin many times in the past. He himself called himself the “father of Dogecoin” when he appeared on the American phenomenal comedy show Saturday Night Live, while jokingly calling Dogecoin “a scam”, causing Dogecoin to plummet. In addition, Musk has shouted Dogecoin several times on Twitter, driving up its price. This series of events shows that Musk’s own behavior has shown a strong positive correlation with the price of Dogecoin.

What is the impact of Musk's acquisition of Twitter on Dogecoin?

Elon Musk performed on Saturday Night Live. Source: YouTube

After the crypto bear market opened in May, the price of Dogecoin was affected, and Musk’s influence on Dogecoin was also weakening. However, his recent acquisition of Twitter has brought an increase in the price of Dogecoin, and investors are debating whether it is possible for Musk to let Dogecoin also enter the Twitter ecosystem and become a payment method for Twitter?

Future uses of Dogecoin and other possibilities

For Charles Hoskinson, founder of Cardano Chain and co-founder of Ethereum, the integration of Dogecoin and the Twitter ecosystem is entirely possible. He wrote on Twitter on the 28th, “I think Dogecoin will somehow be integrated into Twitter.” As a very veteran player in the crypto industry, Hoskinson’s words undoubtedly carry a lot of weight. At the same time, he even invited Dogecoin to become a fork of Cardano and mentioned that he is willing to support the migration of Dogecoin to Cardano for free.

What is the impact of Musk's acquisition of Twitter on Dogecoin?

Charles Hoskinson’s Twitter. Source: Twitter

However, the jury is still out on whether Dogecoin will enter Twitter in the future and how it will enter the Twitter ecosystem. Media personality David Gokhshtein said on Twitter that Dogecoin will become Twitter’s “official currency” and believes that “Musk will let Dogecoin work in the Twitter ecosystem in some way.” Twitter users @aarnasays also believe that Dogecoin will eventually make its way to Twitter, boosting liquidity while “preparing Twitter for the Web3 economy.” ”

Earlier this year, Musk mentioned that Dogecoin could become a payment method for Twitter Blue, a subscription service for Twitter, or used to limit spam and bots. But after the acquisition, Musk himself has not mentioned any clear plans regarding Dogecoin.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-is-the-impact-of-musks-acquisition-of-twitter-on-dogecoin/
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