On December 14, Dogecoin (DOGE) saw a sharp price surge. After Elon Musk stated that Tesla will accept it for some sales.
DOGE/USD was the only major cryptocurrency to gain ground on the day, with a gain of more than 25%.
DOGE holders saw a 10% weekly gain after the meme-based altcoin followed Bitcoin (BTC) and other high cap coins down.
Following Tesla CEO Elon Musk‘s announcement that the automaker would soon start taking DOGE for items, the change was made.
He wrote, “Tesla will make some items available for purchase using Doge and see how it goes”.
As a result, Tesla takes the uncommon step of accepting only Dogecoin out of all the available cryptocurrencies. Musk runs the danger of enraging Bitcoin supporters. As he previously authorised then banned Bitcoin purchases for Tesla automobiles due to supposed environmental concerns.
Musk said Dogecoin is “more suitable for transactions” than Bitcoin after TIME Magazine selected him to be the “Person of the Year” this week.
“The overall transaction flow that you conduct with Dogecoin, like transactions per day, has a far bigger potential than Bitcoin,” he stated, adding to a long list of prominent endorsements of DOGE.
Dead dog bounce?
Analysts, on the other hand, are sceptical about the broader altcoin recovery.
With Bitcoin retaining its 40% market cap domination while failing to reverse its decline, there is little reason to believe that bagholders will see new profits this year.
“Beginning to get some June/July feelings on the markets. Where we’re just chopping around, slowly consolidating towards a bottoming structure. While the masses are waiting for a lower level to be hit, which they’ll probably miss”, Michal van de Poppe predicted in a more upbeat commentary on Wednesday.
DOGE/USD was back below $0.20 at press time, following a period of consolidation.