Dogecoin is one of the most popular memecoins in the crypto industry, and the price has increased by 35 percent since Monday as the date for Elon Musk’s Twitter acquisition draws near.
This follows the trend of the Tesla CEO impacting prices through just his comments. The value of the meemcoin is up ten percent in a single day after the SpaceX CEO changed his Twitter bio to ‘chief of Twit.’
Musk Shares Concept of Doge Payments for Twitter
Then, back in April, the memecoin saw a sharp price increase when he first shared the idea of making Dogecoin payments available for Twitter’s subscription-only service, Twitter Blue. Then, when Musk attempted to back out of the purchase in June, it set off a further increase in price.
But after a month of Musk going back and forth about the sale of Twitter, it seems likely that he will close the deal on Friday by 5 PM. The only other alternative involves Musk sitting trial in a Delaware courtroom.
Rumors of Twitter Launch Its Own Crypto Wallet
The Dogecoin price surge also co-occurred with the rumors that Twitter is in the works for designing its own crypto wallet.
A prominent tech blogger known for accurate predictions in the space tweeted on Monday that the platform was coming up with a crypto-friendly prototype that would permit crypto withdrawals and deposits.
According to Wong’s statements, there’s no information about what cryptocurrency will be supported, or what network the cryptocurrencies will be based on.
Although the popular social media platform has yet to announce a crypto wallet of its own, it did launch a tipping option last year. It lets users send creators Bitcoin through the platform. In February, Twitter introduced ether to its tip feature.
The Effect of Elon Musk on Crypto
Crypto proponents are unsure of when Elon Musk became a Dogecoin fan. The eccentric billionaire CEO of SpaceX and Tesla has been talking about the memecoin for years.
Sometimes, even a tweet from Musk featuring a cryptic comment about Dogecoin has led to the memecoin achieving record price growth.
Additionally, the tweets have been a means for crypto analysts to gauge retail investor interest. Based on statements by a Ripple General Manager, Asheesh Birla, Musk is like a cult leader in the world of crypto.
Aside from Musk, other celebrities who endorse Dogecoin include the owner of the Dallas Mavericks Mark Cuban and even Snoop Dogg.
According to research by one analyst, the Dogecoin price surge in 2021 occurred as a result of Musk’s appearance on Saturday Night Live on May 8. Musk’s vast popularity in the crypto space even caused trading applications like Robinhood to crash.
And Musk’s reason for promoting the cryptocurrency follows a simple sentiment that something as obscure as Dogecoin can also hold value. Consequently, he buys it because he can.