Dogecoin sees massive price action after Elon Musk buys Twitter
Dogecoin’s price has spiked since Elon musk’s purchase of Twitter.
The 9th largest coin by market cap, Dogecoin rose by 40% in 7 days since it became known that Elon musk was about to finalize the purchase of Twitter, one of the social media giants.
Why is Dogecoin Increasing in Price?
The reason for this price gain seems to be because of Elon Musk’s love for the meme coin. Elon musk seemed to be fond of the coin ever since 2019, when he had shown interest in the coin severally through tweets and sometimes interviews.
Here is a tweet from 2019 where he showed interest in the cryptocurrency.
Doge first saw a 20% increase in price 8 hours after Elon Musk posted a video of himself at the Twitter headquarters in San Francisco, California.
In the video, Elon Musk is seen carrying a sink through the door of the Twitter HQ entrance. He used the caption; ”Entering Twitter HQ – let that sink in.”
People believe Elon musk will integrate dogecoin as a means of payment into the platform. Activities like tipping, running ads, and other services like Twitter blue.
Data from coin market cap shows that Dogecoin was below $0.07 before the news about Musk finalizing the twitter deal.
Dogecoin rose to the $0.15 mark this week (November 1st-7th) this price is its peak viewing Doge at a 7day timeline. Its 24H volume also rose to $8.07B which is a lot higher than the less than $1B 24h volume it had at the beginning of the previous week.
Dogecoin was created by Billy Markus and Jackson palmer in 2013. They launched the cryptocurrency to playfully tease Bitcoin and other cryptocurrencies claiming they could take over the financial system.
Dogecoin is launched on the Litecoin network, a decentralized peer-peer cryptocurrency.
Back in 2014, community members donated $30,000 worth of Doge, to fund the Jamaican bobsled team to the Sochi winter Olympic games. They also donated $11,000 worth of Doge to build a Kenyan well, and $55,000 to sponsor NASCAR driver josh wise.
It began seeing exposure when popular crypto exchange Binance listed it among its trading pairs in 2019.
Dogecoin initially wasn’t created for any real value to the blockchain ecosystem. It isn’t like Ethereum which allows Dapp and smart contract integration or like Solana that enables fast transactions. It is also not a store of value. The coin, however, has started getting use cases as a means of payment by merchants.