Elon Musk Shakes Up the DOGE Price. Again

Elon Musk Shakes Up the DOGE Price. Again

Dogecoin (or DOGE) is a cryptocurrency that was created back in 2013 as a joke. The name itself is a reference to a now-classic “doge” meme that portrays a silly picture of a Shiba Inu. It has now reached a capitalization of over $85 billion and has become one of the most volatile cryptocurrencies.

Doge is a widely used altcoin. Altcoins basically include all cryptocurrencies and tokens that are not Bitcoin. Altcoin stands for alternative cryptocurrency. The coin is compatible with ethereum-based blockchain which makes it possible for its holders to access a decentralized finance network. This allows for the direct peer-to-peer exchange of coins without the involvement of any third parties, like banks or brokers.

One of the things the currency is also famous for is the fact that it is one of Elon Musk’s favorite memes.

Elon Musk has had an influence on cryptocurrency’s growth on multiple occasions already. This time Doge has Musk’s appearance on Saturday Night Live to thank. Last week, when preparing to host SNL, Tesla’s CEO made a tweet referring to himself as Dogefather.

This is not the first social media PR stunt he did for Dogecoin. He is even known to make some contributions to the growth of BTC. All stunts without exceptions were followed by a rise in the cryptocurrencies’ price.

The first time this happened was when Musk named DOGE the cryptocurrency of the people in one of his tweets back in February. This sent the coin’s price up 75%.

Such susceptibility to tweets from one single person raises questions and concerns among traders regarding the future of the coin. Will it eventually collapse? Or will the world-famous billionaire’s influence on the market diminish as time passes?

The most recent stunt resulted in DOGE/USD going up 20%. This is especially good news considering the effect BTC’s price drop had on the altcoin market. The last time this happened, DOGE went way lower than its recent record high of $0.47.

This all-time high was achieved not without the help of Elon Musk either. The price rose as a result of his promise to put a literal Dogecoin on the Moon after the new SpaceX rocket launch. It has now been confirmed that SpaceX is planning a rideshare mission to the Moon that is fully funded by Dogecoin. This will be the first-ever space mission funded by cryptocurrency.

However, shortly after the show aired the DOGE’s price went back down. Obviously, investors who have been observing how the tweets made its price skyrocket, sold the coin right after Musk mentioned it on SNL. As a result, Dogecoin was down 40% on the next day already.

The DOGE sell-off was so active that some exchanges even experiences issues with processing crypto trades all due to the volume of them.

Some speculate the reason for the price drop is the fact that investors were expecting to hear more about the altcoin than a mere mention by Musk’s mother. It is, however, far more likely that people took advantage of such a rise in the price that preceded the show.

It’s barely been a couple of weeks since the Dogecoin day. A holiday that was hyped up as an attempt to raise the price of DOGE to $4.20 before the launch. Unsurprisingly, the goal ended up very far from being achieved.

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Nevertheless, the Dogefather tweet made Doge appear among the most actively growing currencies of the day having beaten Ethereum which has been reaching its all-time highs lately.

Bitcoin is on the list as well, although failing to steady its price for those expecting the “alt season” to prosper on.

Experts note that the altcoin market’s latest recovery is much stronger than the previous one that took place in February. Even when followed by a 17% drop in April, the market stands strong. After all, this drop is far less significant than the one that took place in February. This provides reasons to believe that altcoin is attracting a lot of interest among the public.

Cristina Macias
Cristina Macias is a 25-year-old writer who enjoys reading, writing, Rubix cube, and listening to the radio. She is inspiring and smart, but can also be a bit lazy.