Elon Musk has struck a deal to acquire Twitter for US$44 billion. What does it mean to cryptocurrencies like Dogecoin?
Dogecoin (DOGE) prices are skyrocketing amid optimism over Elon Musk’s US$44 Billion Twitter buyout. Musk had hinted at a possible integration of the world’s largest meme token into Twitter. The price of Dogecoin rose 1.76% over the past 24 hours to just shy of US$0.1322. One of the leading cryptos continues to trade in a relatively tight range around that level but remains volatile, falling as low as US$0.1239 in recent days and changing hands around US0.1641, a week ago. Dogecoin and other cryptocurrencies should in theory trade independently of mainstream financial markets, but they have proved correlated with other risk-sensitive assets like stocks — especially technology stocks.
DOGE whale transactions hit a four-month high
Elon Musk is famous to move cryptocurrencies’ prices, especially Dogecoin with his cryptic and controversial Tweets. According to data from a blockchain analytics firm into the block, crypto whales are hovering over Dogecoin suggesting a big move in the future. Big transactions of over US$100,000 have reached a four-month high, indicating increased whale trade.
According to Dogecoin Whale Alert, over US$66.6 million worth of Dogecoin has been transferred among multiple wallets in the last 6 hours. The single biggest transaction recorded by the tracker has been over US$48.2 million. Meanwhile, Dogecoin’s 24-hour trading volume of US$7,180,077,402 has surged by a whopping 800%. After a long wait DOGE token has finally entered the list of top 10 cryptocurrencies.
What is Dogecoin?
Dogecoin (DOGE) is based on the popular “DOGE” Internet meme and features a Shiba Inu on its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and was forked from Litecoin in December 2013. Dogecoin’s creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme. Tesla CEO Elon Musk posted several tweets on social media that DOGE is his favorite coin.
Elon Musk and Dogecoin
The success of Dogecoin is closely intertwined with Elon Musk’s passion for it. Musk began tweeting about Dogecoin in early 2021, sharing a Lion King DOGE meme. That kickstarted a furious DOGE rally — with temporary dips — that culminated in Musk’s appearance on Saturday Night Live.
After the SNL appearance, DOGE crashed despite Musk’s promises to the moon its price. In the following months, Musk seemed to lose interest, and the price of DOGE has tumbled over 70% from its all-time high. However, Musk still yields power over Dogecoin, as occasional tweets indicate.
Why Dogecoin is so popular?
The DOGE community uses its size to support good causes all over the crypto space.
- In 2014, the Dogecoin community raised US$50,000 to help send the Jamaican Bobsled team to the Sochi Winter Olympics.
- For World Water Day (March 22, 2014), loyal Shibes raised US$30,000 to help build clean-water wells in the Tana Valley, Kenya.
- Shibes has even tried NASCAR (North American Stock Car Auto Racing). In March 2014, Shibes paid US$55,000 to sponsor a driver named Josh Wise. Wise raced in a Dogecoin NASCAR-themed car.
Dogecoin Price Prediction 2022
The price of Dogecoin is currently hovering around US$0.1322, following some sideways trading over the past month. To help clarify the coin’s long-term prospects, presented below is a brief overview of Dogecoin’s forecast for the years ahead:
- End of 2022 – Although Dogecoin’s value has decreased significantly over the past eight months, the coin still benefits from incredible backing from social media communities. Due to this, any collaborative buying from retail traders could push DOGE towards the US$0.3500 level by the end of 2022.
- End of 2023 – Now that Dogecoin has real-world use cases, such as online tipping, there is more reason for people to hold DOGE for its utility. Assuming the dev team adds further use cases, we could see the Dogecoin price reach US$0.6000 by the end of 2023.
- End of 2024 – Finally, it’ll still be a tall order to reach May 2021’s all-time highs, although consistent marketing and more utility could help DOGE achieve this feat. With that in mind, many crypto analysts forecast that Dogecoin could return to the US$0.7300 level by the end of 2024 – a 500% increase from today’s price.
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