Key Takeaways
Dogecoin has greater than doubled over the previous seven days.
The meme coin obtained a big enhance from Elon Musk’s acquisition of Twitter.
Many speculators are hoping Musk will combine Dogecoin with Twitter, pushing its worth even larger.
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Dogecoin has turn into the top-performing main crypto asset after leaping 134% over the previous seven days.
Dogecoin Leads the Market
Dogecoin mania is again.
Crypto’s authentic meme coin has outpaced the market over the previous seven days, spurred on by tech billionaire Elon Musk’s acquisition of Twitter. On October 25, Musk advised his monetary backers that he deliberate to finalize his buyout of the social media large by the finish of the week. Adding to a broader crypto market rally, the information pushed Dogecoin’s worth up 36% by the Friday acquisition date.
However, it wasn’t till the weekend that the actual fireworks started. Less than 24 hours after Musk formally took management of Twitter and fired a number of of the firm’s prime executives, Dogecoin started one other leg up. The Shiba Inu-themed coin gained an additional 87.5%, hovering from round $0.08 on Friday to a excessive of 0.15% on Tuesday morning earlier than a slight cool-off.
To the uninitiated, it might appear coincidental that Dogecoin has rallied a lot on the again of Musk’s Twitter buyout. However, the Tesla and SpaceX CEO has an extended connection to the meme coin courting again to the begin of 2021. Musk was instrumental in serving to Dogecoin soar to an all-time excessive of $0.73 on May 8 by a number of tweets, a Saturday Night Live sketch, and revealing he had personally invested in the meme coin.
Musk’s affinity for Dogecoin continued in 2022 when he introduced that Tesla would begin letting prospects buy merchandise utilizing DOGE. However, what has Dogecoin lovers excited this time round are some feedback Musk made in dialog with former Twitter CEO Jack Dorsey concerning methods to assist decentralize and struggle bots on the social media web site.
Last month, a doc containing a number of of Musk’s conversations regarding his buy of Twitter was introduced as proof at the trial between Musk and Twitter. Several of Musk’s feedback allude to creating or modifying Twitter to turn into extra decentralized or numerous methods to fight the web site’s rampant bot downside. Of notice is one change the place Musk particulars a “blockchain-based version of Twitter where the “tweets” are embedded in the transaction as feedback.” In this plan, Musk additionally floats the thought of charging 0.1 DOGE per remark or repost.
Now that Musk has taken management of Twitter, hypothesis that he’ll combine Dogecoin with the social media platform is reaching a fever pitch. Seeing the meme coin mania unfold, it seems Musk has reverted to his 2021 tactic of posting cryptic Dogecoin-related tweets, including much more gasoline to the hearth. On Monday night time, Musk tweeted out an image of a Shiba Inu sporting a t-shirt with the Twitter brand. In response, Dogecoin had gained one other 23% by the following morning.
Is Dogecoin Running Out of Steam?
After such an excessive surge in Dogecoin’s worth, buyers and onlookers alike are beginning to surprise how a lot larger the meme coin can go. Now that the principal occasion has handed with Musk finalizing the Twitter deal, the Dogecoin rally seems to be slowing.
Posting photos of Shiba Inu canine on Twitter can solely spur patrons so many occasions—at a sure level, these speculating on DOGE will begin to tire of Musk’s cryptic posting. Still, many are holding out for one remaining push upward if and when Musk reveals what he has deliberate for his favourite crypto asset in relation to Twitter.
Paradoxically, Musk’s ongoing hints and teases at a Twitter Dogecoin connection is likely to be the bullish state of affairs. By persevering with his cryptic “Dogeposting” Musk is letting speculators’ imaginations run wild, additional detaching Dogecoin’s worth from something basic. Once this spell is damaged—both by excellent news or unhealthy information—buyers will doubtless lose curiosity and take earnings in the quick time period as the suspense has been damaged.
However, no matter whether or not the present DOGE rally continues for one more month or fades tomorrow, this episode has revealed priceless details about Dogecoin and Musk’s relationship with it. It’s clear that the tech billionaire will proceed to shill his favourite crypto asset, barring any intervention from regulators corresponding to the SEC. If Dogecoin can double in worth in lower than per week beneath the present harsh macroeconomic situations, suppose how excessive speculative mania might push it up throughout a full-blown bull run.
Disclosure: At the time of scripting this piece, the writer owned ETH, BTC, and a number of other different crypto belongings.
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