Dogecoin Sees Immediate Surge of 25% after Elon Musk Tweet
Wallet Specialist – Tyler
The cost to buy Cryptocurrency has seen a rise across most of the market. Dogecoin (DOGE), a platform initially inspired by the popular meme has recently risen by 25% after Tesla CEO, Elon Musk, CEO of Tesla, has given the community further media coverage via Twitter.
Musk, at times, shows his excitement and enthusiasm towards Cryptocurrency, like buying Bitcoin and discussing Crypto Market investments. However, whenever he discusses this topic along with the mentioned Cryptocurrencies, the market reacts fairly aggressively. When Elon Musk previously tweeted about Dogecoin back in July 2020, he stated that he could see a "Dogecoin standard future." At this point in time, Dogecoin rallied at 14%.
The reason for Musk’s tweet to cause a surge in price for DOGE is simply down to attention. If there is a rise in attention toward a product on the market, then the value of the Cryptocurrency greatly increases. With Dogecoin trending on Twitter due to the interest from Musk, the market value spiked for the Cryptocurrency.
At the time of writing, Dogecoin has a market value of around $549 million according to recent data. Despite being worth so much, in comparison to more popular cryptocurrencies including Bitcoin and Ethereum, Dogecoin’s value is much lower. Since DOGE is only the 44th largest Cryptocurrency, it is expected for its volume and liquidity to be lower than other higher ranking Crypto. Some have observed the responsiveness of the market when an influential figure shows interest, such as this case, bringing excitement to lower ranking coins and showing effects on their market price.