After Elon Musk finalized his purchase of Twitter on Friday, the price of Dogecoin rose more than 70% on Saturday. This Musk-backed cryptocurrency is currently trading at $0.1262.
The CEO of Tesla Motors is a staunch fan of digital currencies. Elon Musk has had a great impact on the price of Dogecoin and Bitcoin with his various actions. Tesla started accepting Dogecoin as one of its payment options earlier this year. Elon Musk’s newly launched perfume brand can also be bought with this cryptocurrency.
Dogecoin; One of the six largest digital currencies in the world
According to CoinDesk data, Dogecoin could overtake the Cardano token and establish itself as the sixth largest digital currency in the world.
Twitter has been a fan of Bitcoin since CEO Jack Dorsey, one of the founders of the social network, has explored ways to add blockchain technology.
Cryptocurrency exchange Binance, which invested $500 million in Musk’s purchase of Twitter and is now planning to help reduce the social network’s bots using crypto-centric approaches, could benefit Twitter in terms of blockchain and cryptocurrency.
Musk recently said that he plans to make Twitter an “app for everything” after buying it. Such an idea can be attributed to programs such as WeChat. These programs allow users to make payments and purchases in addition to sending messages.
Musk’s tweets about Dogecoin, including one in which he referred to it as “the people’s crypto,” have fueled the once-obscure digital currency that began as an online joke.
This price growth naturally caused a sharp increase in the volume of Dodge transactions. According to data from the analytics platform Sentiment, this was accompanied by an increase in the number of transactions above $100,000 on the Dogecoin network. The status of both of these indicators indicates an increase in demand for Dogecoin among wealthy investors or so-called whales.
As you can see from the image above, the rapid and unprecedented jump of Dogecoin in the last two days is actually the continuation of an upward trend that began on October 25. In total, this meme coin has grown almost 150% from October 25 to 29.
This price growth naturally caused a sharp increase in the volume of Dodge transactions.