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Elon Musk has yet again proved that he is the 'Godfather' of Dogecoin. Yesterday, the Tesla CEO has announced that the electric vehicle-making company will accept DOGE payments on a test basis starting from May. Dogecoin has been stumbling upon many hurdles recently. With its competitor Shiba Inu making a strong stance in the cryptocurrency market, the native memecoin slipped from its position, worrying investors about a bear run. Fortunately, Dogecoin Godfather has come to its rescue.
Elon Musk tweeted that Tesla will make some mech buyable with Dogecoin and see how it goes. This initiative from the cryptocurrency enthusiast has sent the memecoin price up by 24%. At the time of writing, DOGE was traded at US$0.1959 and has also entered the top 10 cryptocurrency list after a month. However, this is not the first time Elon has sent Dogecoin to the moon. His tweets and constant mention of memecoins have made Dogecoin soar by 5,859% over the past year. Although DOGE price is supported by various factors, its connection to Elon Musk is no joke. Recently, two main reasons are driving Dogecoin's price. One is the market capitalization relative to its total mining revenue is lower than Ethereum and the other is DOGE's total aggregate mining revenue just surpassed the crucial US$1 billion mark. While this has already created hype around the memecoin, Elon's tweet came as a major blow to its price. Therefore, we explore the potential of Elon Musk's opinion to help Dogecoin make a comeback in 2022.
Dogecoin is the first memecoin created in 2013. It was born out of online memes and jokes of a Shiba Inu dog that went viral on the internet. The first DOGE was traded in early 2014 for US$0.001540753. But today, the cryptocurrency has gained up to 32,000% in value since inception. However, Doge coin didn't hit the mainstream investment model in the early days. Since its launch in 2013, DOGE maintained a low profile till Bitcoin's rally in 2020. After people became more familiar with the cryptocurrency market, and enthusiasts like Elon Musk and Mark Cuban came to standby DOGE, it gained prominence.
After keeping the spot as the best memecoin for a very long time, Doge coin lost its crown briefly to Shiba Inu during the recent spate. The Change.org petition demanding SHIB to be added to the Robinhood platform and its entry into the NFT space has put Shiba Inu as a direct competitor of Dogecoin.
Practically speaking, Dogecoin and Elon Musk have no connection with each other. After he was labeled the richest man on the planet, everybody seems to be interested in what Elon is doing and how he is managing his investment portfolio. Elon boarded the DOGE train in 2020, initially using it as an entertainment convo to keep his social media posts engaging. But over time, his tweets and mentions became a major driver of Dogecoin's price. Here are a few times, DOGE price was shaken by Elon's words.
Unlike mainstream cryptocurrencies like Bitcoin and Ethereum, Dogecoin and Shiba Inu are memecoins that are extremely volatile. Owing to its sudden price surge and falls, it is not seen as the best investment model among crypto experts. But for enthusiasts who like to explore the potential of all cryptocurrencies, Doge coin is a good option. Besides its underlying technology and functionalities, DOGE's value highly depends on its honest investors. Its faithful supports make Dogecoin price go up and down and Elon Musk is also one of them. Therefore, if the followers and price drivers like Elon Musk work hand in hand, they can surely make Dogecoin debut as a top cryptocurrency in 2022.
