- Elon Musk’s support for Dogecoin has contributed immensely to the popularity and cultural relevance of the asset.
- Analyst predicts that both Dogecoin and Shiba Inu may stage a rally, but would not reach their all-time highs.
Tesla CEO Elon Musk has been a key proponent of Dogecoin (DOGE) with his influence propelling the asset to new highs. His groundbreaking involvement came in 2019 when he replied to a tweet that Dogecoin is his favorite crypto. Around the time of the tweet on April 2, 2019, Dogecoin was trading at $0.002552. Purchasing $100 worth of the asset at that time would have yielded a return of $3,299.38 based on the current price. Its all-time high of $0.07376 was recorded in May 2021 following one of Musk’s tweets.
His last mention of the meme coin came in April 2023 when he disclosed a million Dogecoin as a reward for proof of the existence of an emerald mine linked to his family.
On June 19, 2023, Musk reassured his followers on X (formerly Twitter) that he would keep supporting Dogecoin. Interestingly, Musk has not had it easy with his Dogecoin-related tweets as he once faced a lawsuit instigated by a Doge investor Keith Johnson. Johnson accused Musk of running what he termed as “Dogecoin Crypto Pyramid Scheme”. This was filed as a class-action lawsuit in a New York court.
Market analysts believe that the impact of Elon on the meme coin cannot be overlooked as it goes beyond price volatility. According to them, the constant tweet about the asset has contributed to its popularity and cultural relevance, leading to an increase in mainstream adoption. Leveraging on that, the meme coin has been able to establish groundbreaking partnership agreements with renowned brands.
More on the Evolution of Dogecoin
In a recent report by Crypto News Flash, luxury automobile manufacturer Ferrari announced that it is accepting Dogecoin as a payment option in the US. In October 2021, it emerged as the most popular crypto in the US according to Google Trend data. States including Illinois, Florida, Hawaii, and New Jersey topped the list, averaging 7 million searches of content related to Dogecoin. Around the same time, Musk had tweeted that he was thinking about a new university where tuition would be in Dogecoin as published by Crypto News Flash.
As of the time of writing, Dogecoin was trading at $0.142649 and had surged by 18% in the last 24 hours, extending its weekly returns to 67%. Its 24-hour trading volume has also surged by $5 billion, representing a 59% increase.
Speaking on its potential, crypto analyst Altcoin Sherpa has predicted that both Dogecoin and Shiba Inu could make a bullish run. However, he warned that these meme coins may fail to return to their all-time highs.
DOGE and SHIB will never experience the same insane growth they did back in 2021, simply due to the market cap now. Both of those coins are established big caps (literally) and are more going to trade like big liquid coins that you can do on any big CEX (centralized exchange). With that said, DOGE and SHIB both ironically look like extremely good charts. Both have had almost two years in accumulation and I expect both to have huge runs sometime this year in 2024-2025. But I’m planning to just wait for the first big move before hopping on the train and trading later.
