Elon Musk's Twitter Deal Sends Dogecoin Soaring by More Than 25 Percent: Here's Why

Elon Musk has purchased social media microblogging site Twitter in a $44 billion (roughly Rs. 3,36,486 crore) deal.

Elon Musk's Twitter Deal Sends Dogecoin Soaring by More Than 25 Percent: Here's Why

Photo Credit: Unsplash/ Kanchanara

Right now, Dogecoin is worth only half of what it was worth one year ago

  • Dogecoin's value has gone up by 25 percent in the last 24 hours
  • Musk has been a long time, vocal supporter of Dogecoin
  • Dogecoin's value has fluctuated tremendously in 2022

Popular meme coin Dogecoin has jumped more than 25 percent in the past 24 hours following reports that Twitter has accepted billionaire entrepreneur Elon Musk's $44 billion (roughly Rs. 3,36,486 crore) offer. The intraday pump in price and popularity is likely due to the fact that Musk has been a long-time, ardent supporter of DOGE. During the past weeks and months, he has publicly suggested that Twitter adopt DOGE as payment for pro subscribers, and as a tipping feature to content creators as well as other possibilities.

It's worth noting that during an interview for a TIME article, in which Musk was named the 2021 Person of the Year, the Tesla CEO said DOGE was a superior form of digital payment compared to Bitcoin. Bitcoin has the largest market valuation of any crypto and is more than 30 times the market value of DOGE, according to CoinMarketCap, but Musk still prefers Dogecoin for payments.

While completely speculative, possible use cases of DOGE for Twitter could be the creation of a Dogecoin-centered digital wallet or full-blown DOGE-based payment platform that could be free to Twitter users. Lest we forget, Musk made his first million as the co-founder of PayPal, so he is extremely knowledgeable when it comes to digital payment platforms.

DOGE has been steadily rising since it hit a low of $0.1239 (roughly Rs. 9) on April 25, climbing up to around 25 percent higher. At the time of writing, the price per coin is $0.177 (roughly Rs. 14). The DOGE market cap has also seen an impressive rise to $21.5 billion (roughly Rs. 1,64,527 crore), putting the crypto into the top 10 list by market cap values.

That said, Dogecoin's value has fluctuated tremendously over the past two years and it's not safe to assume that anything is going to the moon just yet. Even after today's Musk-induced rise, Dogecoin is worth just a quarter of its peak value which is to say that if you bought $1,000 (worth roughly Rs. 76,495) of Dogecoin on May 7 of last year, it would be worth about $257 (roughly Rs. 19,660) today.

No one knows for sure what's next for Twitter, its management team, or what Musk has in store for the social media platform. However, one thing we do know for sure is the social media platform that he'll use to tell us.

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