It has become certain that the future of the “Dogecoin” cryptocurrency is linked to what is being said by the American billionaire Elon Musk.
Yesterday, the CEO of the American automobile company Tesla, delivered a strong blow to the digital currency, and today he corrects his mistake with positive statements.
Last Saturday, Musk responded to questions about the secret of his support for Dogecoin, when he appeared on Saturday Night Live, and said: “It is the future of the currency .. It is a financial instrument that cannot be stopped and may take over the world.”
After these shocking comments, Dogecoin lost more than a third of its price on Sunday, recording $ 0.416 on Binance, down 36% from levels around $ 0.65 before the Saturday Night Live show.
Supportive remarks from Musk
On Tuesday, the US billionaire resumed his support for the digital currency, when he asked his Twitter followers in a tweet whether Tesla should start accepting Dogecoin as a payment method for its cars.
Musk’s question restored the cryptocurrency to its place Tuesday, as the fourth largest digital currency in terms of value, after the move was deemed to legitimize these digital assets.
According to Forbes, Dogecoin’s price after the tweet rose about 14% to about 53 cents, down from an all-time high of 73 cents this weekend before Musk appeared on Saturday Night Live.
Dogecoin’s market value increases
The new rise in the value of the cryptocurrency, contributed to increasing the market value of Dogecoin to more than 68 billion dollars, to overtake XRP to become the fourth most valuable cryptocurrency.
Within 60 minutes of Musk’s tweet, it garnered more than a million comments, with 80% of the responses supporting the idea put forward by the American billionaire.
“I think he (Musk) has a lot of fun, he can say whatever he wants about Dogecoin or cryptocurrencies, fully aware that just saying something drives the price,” says James Engle, an assistant professor at Georgetown University’s McDonough School of Business and a specialist.
Elon Musk is almost the most prominent reason for Dogecoin’s unjustified rise in the past month, by 800%.
During the year 2021 Dogecoin won about 10,000%, in light of the controversy over the digital currency.
And Musk caused the rise of the currency through his multiple tweets that reached the point of his expectation that Dogecoin would outperform all other digital currencies.
But the coin, which had no real advantage to prove its superiority, remained suspicious even at its very high.
The currency was originally founded to ridicule the world of digital currencies, and it did not bear the same rules for its issuance size ceiling, as it was symbolized by the image of a Shiba Inu dog.
This digital currency does not have applications in practical life, nor does it have an achievable project or goal.