Elon Musk and His Power to Sway Dogecoin Community, Does He Hold DOGE Massively?

UTC by Bhushan Akolkar · 3 min read
Elon Musk and His Power to Sway Dogecoin Community, Does He Hold DOGE Massively?
Photo: Depositphotos

Elon Musk’s recent move to replace the Twitter logo with a “Doge” meme resulted in a massive boost in DOGE social volumes. Traders hint at a possible price retracement ahead.

Elon Musk created a storm in the crypto space earlier this week by changing the Twitter logo to a Shiba Inu “doge” meme. This was in direct reference to the billionaire’s everlasting support to the memecoin crypto DOGE.

This development at Twitter was enough to send the DOGE price skyrocketing by more than 30% instantly moving to 10 cents at one point in time. As of pres time, Dogecoin (DOGE) is trading at $0.092 with a market cap of $12.8 billion.

Another reason behind the recent Dogecoin (DOGE) rally is that many believe that Elon Musk would integrate DOGE payments into Twitter anytime soon. As we know, Twitter has millions of active users across the world. As a result, Dogecoin enthusiasts are betting that if DOGE payments come to Twitter, it would drive a strong demand and use for the cryptocurrency.

However, that might not be necessarily the case, explains CoinDesk’s Daniel Khun. He adds that Twitter already has a tipping feature using the US Dollar and the Bitcoin Lightning Network. Kuhn adds:

“The latter (BTC Lightning Network) is rarely used, which gives some indication of how frequently the even-less-widely adopted and even-less-trusted crypto, dogecoin, would (or wouldn’t) be used”.

Elon Musk & DOGE Price Fluctuations

This is not the first time that Elon Musk has ignited a spark in the Dogecoin community to push DOGE price higher. It all started back in early 2022 when Musk tweeted a meme leading to the surge in DOGE price.

Since then he has pulled similar upmoves in the DOGE price again and again. Furthermore, Musk also weighed in a dispute between DOGE traders and crypto exchange Binance. His car company Tesla would allow DOGE payments.

Additionally, Elon Musk also allowed to DOGE payments at this electric car company. The Twitter chief also believes that the Dogecoin blockchain is better than the Bitcoin blockchain for micro-payments.

In his story, Kuhn adds that “there’s speculation Musk may be a massive DOGE holder, though it’s unknown how much, if any, he owns. Investors in New York actually filed a racketeering lawsuit against Musk alleging he purposely drove up the price of DOGE by 36,000% (the evidence being his tweets and a “Saturday Night Live” appearance as host) only to short the crypto when it inevitably collapsed”.

However, last week on March 31st, Musk’s lawyers asked to throw away the $251 billion suit adding that the plaintiff’s arguments were too vague.

The recent price rally in Dogecoin (DOGE) has once again dragged the discussion and trader attention to memecoin. On-chain data provider Santiment reports:

Powered by #Dogecoin‘s +20% pump & @elonmusk‘s addition of its logo on #Twitter, the #crypto community is talking about $DOGE & #memecoins at a high frequency. Historically, the mainstream’s fixation on meme coins signals tops.”

Read other crypto news here.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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