DOGE, the digital currency, has risen in value by more than 15% in the last 24 hours due to Elon Musk’s signals regarding integration with Twitter. The meme-inspired cryptocurrency that has been popular with Tesla’s Musk in the past soared to $0. 087 to $0. 101, the highest level in two months and the ranking of 8th most popular crypto currency by its market capitalization.
The rally began with a tweet from Musk where he posted “Doge to the moon!” which he followed by a rocket emoji. This was further elaborated by a larger announcement made during the Twitter Spaces event in which Musk talked about his plans for the platform. Although he did not go into much specifics, he said that Twitter is currently working on ways to accept cryptocurrency payments with special emphasis on Dogecoins because of the fun and active community.
Elon’s Musk comments sparked debate on the use of Doge on the Twitter platform where users expect new features like tipping Twitter users or paying for premium services in DOGE. The billionaire entrepreneur has previously endorsed Dogecoin, calling it “the people’s crypto” and also using DOGE to sell Tesla accessories.
This pushed the crypto analyst and traders into taking note of the sudden price movement. Another crypto market analyst, Alex Kruger, also shared his opinion on the situation saying that ‘Musk’s impact on Dogecoin’s price movement is undeniable. Although the plans remain rather ambiguous, the idea of Dogecoin being integrated into Twitter, a platform that will attract billions of users, is enough to create massive demand. ’
The average daily trading volume of Dogecoin similarly went up, rising from $300 million to over $2 billion after Musk’s comments. This increase in activity appears to indicate increased interest by both retail and institutional investors.
But not all the responses to the news were positive. Some analysts have opined that the price action is more of speculative in nature and not due to any enhancements in the technical aspect of the coin or in the rate of its usage. Cryptocurrency skeptic Peter Schiff said in his Twitter, “This is just another example of how the crypto market can be moved by a single comment. This is not the sign of stable asset class.
Still, the Dogecoin community is very optimistic about the likelihood of broader adoption of this cryptocurrency. The Dogecoin Foundation, a non-profit organization which aims at supporting the development of Dogecoin, issued a statement that it welcomes any measures that may enhance the usefulness and popularity of the said digital currency.
While the market remains sensitive to the news, investors are advised to be careful as they invest on the market. On the bright side, the possibility of integrating with Twitter is also a good opportunity for Dogecoin, however, as it was mentioned earlier, cryptocurrency prices, and especially those of new coins, may surge and drop within a short period depending on rumors and other factors.
The next few weeks will be decisive for Dogecoin since the community expects more detailed information about Twitter’s cryptocurrency. Whether this price surge marks the beginning of a sustained rally or a temporary spike remains to be seen, but one thing is clear: The cryptocurrency market, especially the dog coin, remains a subject of Elon Musk’s interference and continues to be volatile in terms of price and perception.