Dogecoin (DOGE) jumps 30% after news of Elon Musk’s acquisition of Twitter.
Dogecoin’s reaction to the news of Twitter’s acquisition by Elon Musk
The news of Elon Musk’s $44 billion purchase of Twitter has put the meme coin market into high gear, dragged along by Dogecoin’s 30% jump. It is no coincidence that DOGE is the coin that owes much of its success to the Tesla founder’s support via Twitter.
Dogecoin is the people’s crypto
— Elon Musk (@elonmusk) February 4, 2021
But the rise has affected the entire cryptocurrency market, including Bitcoin, which after slipping to $38,000 on Monday promptly recovered after the Twitter news, returning above $40,000 with a rise of over 5%.
The other main meme coin, now considered Dogecoin’s most dangerous “rival”, Shiba Inu, also gained more than 7%. The entire meme coin sector, valued at around $38 billion, is up more than 9%.
The rise is said to be driven by speculation that this new acquisition could open up Twitter’s payments in Dogecoin, as Musk said last January with reference to Tesla.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
Thanks to this rise, Dogecoin’s capitalization would have returned to $20 billion, which would put it back among the top 10 digital currencies by capitalization.
Apecoin, the currency of Bored Ape Yacht Club, has also been a big seller, and with a capitalization of $5 billion in just a few weeks since its listing, it now ranks 39th in the list of most capitalized cryptocurrencies.
Dogecoin on the wave of past news
When Elon Musk bought 9.2% of the company that controls Twitter at the beginning of the month, Dogecoin jumped 8%. On the other hand, it is worth adding that DOGE has lost around 79% of its value since May 2021 and therefore remains a very volatile and risky currency. It cannot be ruled out that it may suffer sharp falls in the coming days.
The fact that a few weeks ago, Musk himself proposed to be able to pay for the services of Twitter Blue, can only trigger speculation on the stock, imagining that the new owner can implement the currency in the social network, perhaps starting with subscriptions to Twitter Blue.
Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, said:
“The Twitter deal news has led to speculators buying dogecoin due to Elon’s obsession with the cryptocurrency, and hence the potential for dogecoin to be given more utility on one of the biggest social media networks if Elon is successful”.
Dogecoin was the first cryptocurrency to pioneer the so-called meme coin trend, born without its own blockchain almost as a joke inspired by some particular image or iconography.
Dogecoin was founded in 2013 as a sort of mockery of Bitcoin, and in just a few years it has capitalized over $1 billion. But it was thanks to Elon Musk’s frequent tweets that the coin literally skyrocketed, entering the top ten most capitalized cryptocurrencies on the market last year.