The price of Dogecoin has soared as Elon Musk reaffirms his support for the cryptocurrency — will Doge go to the moon?
Following yet another tweet from Elon Musk, the price of DOGECOIN soared on Thursday. But what does this signify for Dogecoin’s future? Will it be able to reach the moon?
On Thursday morning, Dogecoin jumped over 10% after Elon Musk, CEO of Space X and Tesla, tweeted a meme from The Godfather trilogy with the caption: “Release the Doge!” Mr Musk posted lyrics to a spoof of the classic children’s song Baby Shark, changing the lines with “baby Doge” less than an hour later. The market reaction was less visible than it had been in the past when Mr Musk rallied around Doge on Twitter, but prices still rose as a result of the announcement.
After tweeting his support for the meme-based coin in May, Mr Musk catapulted Dogecoin to new heights of renown and all-time high pricing.
Dogecoin’s price doubled in under 24 hours, breaking records above $0.40 (£0.29).
Following Mr Musk’s mention of the coin multiple times during his stint hosting Saturday Night Live, the coin eventually reached a high of $0.70 (£0.51) on May 8. (SNL).
Doge has largely plummeted since then, trading at roughly $0.25 (£0.18), but it still represents remarkable gain from this time last year, when it was valued only two-tenths of a penny.
Mr Musk’s public interest in Dogecoin and other cryptocurrencies has sparked debate inside the industry, with many worried that his market-moving tweets are exacerbating the issue of price volatility.
Others, on the other hand, argue that bitcoin helps draw attention to the business, pushing it into the mainstream financial sphere and, as a result, encouraging adoption.
“The key factors behind dogecoin’s popularity are its online communities, along with support from high-profile corporate magnates like Elon Musk,” said Michael Kamerman, CEO of financial-technology firm Skilling.
“It is influenced by headlines, tweets, celebrity or corporate endorsements, and while ‘traditional’ investors may dismiss this, it is what attracts the people to cryptocurrencies.”
Let the Doge go! pic.twitter.com/9bXCWQLIhu
There are a variety of reasons why Doge would rather sink than go to the moon, but no one can deny that it has amassed a sizable fan base.
Despite the fact that the digital coin’s foundations are fragile and unknown, its continuous support could propel it to new highs.
Furthermore, Dogecoin’s recent fall isn’t. “Brinkwire Summary News.”