On April 28, the Dogecoin rate on Binance rose by 24% per hour – from $ 0.25 to $ 0.31. Over the past day, it has risen in price by 8%. A sharp surge in quotes occurred after the head of Tesla and SpaceX Elon Musk mentioned the cryptocurrency on Twitter. In this way he announced Saturday Night Live on May 8th.
The businessman mentioned his participation in the talk show, saying that soon “The Dogefather” will be seen on TV screens.
Mentioning the altcoin by Musk each time led to an increase in its quotes.
For example, within 45 minutes of his post on February 4, in which he posted a photo of a Falcon 9 rocket flying and added the caption “Doge”, the digital coin’s value surged 47% to a local peak of $ 0.059. In January, the token rose by 1115% in just three days. And its price renewed its all-time high at $ 0.087. However, this wasn’t because of Musk, but thanks to the WallStreetBets movement, which influenced the “pump” of shares of various companies, including the network of stores selling video games Gamestop.
Since the beginning of the year, its price has risen 63 times. The asset has risen to seventh place in the list of the largest digital coins by capitalization. Its market value currently exceeds $ 37.7 billion.
Why do people listen to Musk?
There are regular posts on Twitter about Dogecoin and other digital coins. But they don’t have the same effect as the mentions of the altcoin by Elon Musk. Now the entrepreneur is perceived by the IT community as an oracle, who, after the Tesla and SpaceX projects, allegedly established himself as a person who turns his investments into good returns. According to experts, any statements by Musk, even those that are not related to his principled business, are perceived by the market as a kind of signal.
Will speculation continue?
Throughout its history, Dogecoin has been experiencing periodic “pumps”, experts say. In their opinion, in the future, the speculation of the head of Tesla on the topic of cryptocurrencies will be less direct. Moreover, they note that Musk is unlikely to make any public statements about cryptocurrencies any time soon. Since, due to the inflated cryptocurrency bubble at the beginning of 2021, not only investors, but also regulators are actively interested in this area.
Future currency of the Earth
Earlier, Musk explained why Dogecoin is so good. To buy it, you don’t need to have a huge fortune or thousands of dollars in your account, because the cost of Dogecoin is calculated in cents.
However, Dogecoin (DOGE) has become the leader in terms of growth among altcoins. A positive fundamental agenda and a bit of hype set a bullish tone, which could eventually spread to other coins.
Probably, in the near future, the growth of the “future currency of the Earth” according to Elon Musk will continue.