It is not news that Dogecoin, the cryptocurrency whose logo graphically references an Internet meme representing a Shiba dog, reacts to news about Elon Musk.
As is well known, the CEO of Tesla has always been a big supporter of the meme coin, and Dogecoin has acquired prestige thanks to him.
The latest news featuring Musk concerns the Twitter payment system that is preparing for potential crypto integration. Even though the technology will be primarily focused on fiat currency, it will be built so that crypto functionality can be added in the future.
Among Musk’s goals is to bring a significant revenue stream to the struggling social media giant. In all this, it is Dogecoin that is the first to react to the news, let’s see why.
Twitter payments engineered by Elon Musk.
As reported in a recent Financial Times report, Esther Crawford, Twitter’s director of product management, worked with a small team to map out the architecture in order to bring payments to the platform.
In addition, the company has also applied for state regulatory licenses in the United States to become eligible for the business, after registering with the US Treasury as a payments processor in November. Musk hopes to obtain a full license in the United States within a year and then expand internationally.
In addition, Twitter’s new CEO has previously shown interest in bringing a suite of payment services to Twitter, ranging from peer-to-peer transactions to debit/credit cards, creating “the everything app” that facilitates payments, commerce and messaging. The app envisioned by Musk would even allow people to purchase products directly through the platform.
Moreover, Musk’s plans apparently include adding a Dogecoin payment option to Twitter, although nothing has yet been confirmed.
According to the New York Times, an initial Pitch Deck to investors last May showed that Musk planned to earn $1.3 billion in payments revenue from Twitter by 2028.
This represents another move by Musk to make Twitter more profitable, including placing verification behind a paywall and cutting thousands of employees from the company.
Before Musk took over, Twitter was already exploring flipping and e-commerce features, building on the Bitcoin tips included in the updates and including NFT support.
How did Dogecoin react to Musk’s latest news?
As anticipated, it is nothing new for Dogecoin to react, positively or negatively, to news featuring Elon Musk, especially ever since the Tesla CEO purchased Twitter.
Indeed, this time was no different. Following the Financial Times report on the subject, Dogecoin briefly rose to a daily high of $0.091, before falling back to $0.086 within hours.
Dogecoin has a history of reacting to Elon Musk-related news, whether or not it is related to the specific meme coin. The digital currency rose 22% ahead of Musk’s acquisition of Twitter as he was moving into Twitter headquarters.
Musk himself has suggested on several occasions that Dogecoin is better than Bitcoin at handling transactions, due to its larger block size limit and faster block speed. He also regularly interacts with the meme coin’s creator, Billy Markus, on Twitter.
In any case, Dogecoin’s bullish trend had already begun a few days ago following a tweet by Musk that stated the following:
I will eat a happy meal on tv if @McDonalds accepts Dogecoin
— Elon Musk (@elonmusk) January 25, 2022
As such, Dogecoin has been trending on Twitter for the past few days, for the umpteenth time. Indeed, there has been a spike in its volume metrics on social, and as a result, the price of DOGE has gone up as well.
As a result of this increased attention, Dogecoin-related mentions and engagements on the social network have seen a big jump. According to LunarCrush‘s data, mentions on DOGE’s social accounts have grown by more than 4% in the last week, along with a corresponding increase in purchases.
Predictions for Dogecoin and its carbon footprint after collaboration with Musk
From a technical perspective, DOGE is slowly but surely approaching the long-term bearish dynamic trend line, which serves as a watershed for a possible trend reversal.
A chess game between bulls and bears is underway, as both directions (in the short term) are the right ones. It all revolves around where the meme coin closes the week: if it closes above the key $0.0900 level, Dogecoin will probably attempt a break-out of the bearish trendline and reach the first target at $0.1000.
Conversely, a close below $0.0900 would lead the bears to short and try to reach at least the key $0.0800 support.
In all this, we see that Dogecoin’s carbon emissions have decreased by 25% as a result of its partnership with Elon Musk. For when Musk backtracked on accepting Bitcoin payments for Tesla, he felt that Dogecoin was better suited for transactions.
So, thanks to the proactive efforts of Musk and members of the Dogecoin ecosystem, the latter has seen a major decrease in its annual CO2 emissions. According to Forex Suggest’s research, compared with 1,423 tons of emissions released in 2021, Dogecoin produced 1,063 tons in 2022.
Moreover, in terms of price performance over one year, in the context of the 2022 bear market, DOGE held up much better than most of the major assets in the crypto market.
Indeed, the meme coin emerged as the third best performer in the top 10, after XRP and BNB. DOGE also outperformed its main competitor, Shiba Inu, as the SHIB community focused on building a layer-2 network and developing metaverse and blockchain games.