• Dogecoin (DOGE) surged approximately 4% following a tweet mention by Elon Musk, the CEO of Tesla and Twitter. 
• Speculation arises regarding Musk’s interest and potential influence on DOGE, as markets react quickly to his comments.

According to cross reports by Fortune and Finance Yahoo, Dogecoin (DOGE) experienced a sudden surge of about 4% within minutes after Elon Musk, the CEO of Tesla and Twitter, mentioned the popular dog-themed cryptocurrency in a tweet. The price of DOGE rose from $0.069 to as high as $0.072 late Wednesday morning following Musk’s post. However, the token quickly retraced some of its gains and was trading slightly below $0.070 at the time of writing, still showing a 2% increase over the past 24 hours, as reported by CoinDesk.

The second largest dog-themed cryptocurrency by market value, Shiba Inu Coin (SHIB), also witnessed a price bump but has mostly retraced its movement since then.

Musk’s Influence on Dogecoin and Crypto Markets

Elon Musk’s affinity for cryptocurrencies, particularly dogecoin, is well-known in the crypto community. His public comments about various crypto projects often lead to rapid market reactions. In the past, his endorsement of artificial intelligence-related tokens caused them to surge in value following his announcement of an AI-focused venture to compete with the popular chatbot ChatGPT.

Due to Musk’s evident interest in DOGE, there is speculation that he may hold a significant amount of the token. Notably, during his appearance on “Saturday Night Live” in May 2021, Musk dedicated a segment to dogecoin, coinciding with the token reaching its all-time high price of 73 cents, according to CoinGecko. However, DOGE has since seen a significant decline, losing around 90% of its market value.

Interestingly, Musk’s recent comments about DOGE come just ahead of Tesla’s second-quarter earnings report, scheduled for later on Wednesday. It is worth noting that during the automaker’s Q2 earnings report a year ago, the company announced the sale of some of its bitcoin holdings, which adds an additional layer of significance to Musk’s remarks.

The impact of Elon Musk’s tweets on the price and market capitalization of dogecoin cannot be underestimated. His recent meme tweet featuring the beloved cartoon character Scooby-Doo led to a 3% increase in the market capitalization of the memecoin, translating to approximately $320 million. In just 15 minutes, the price of one Dogecoin rose from about 6.9 cents to 7.1 cents, although it has since fallen back closer to 7 cents.

Dogecoin traders closely monitor Musk’s Twitter and public comments, as his influence on the market has prompted a group of the token’s investors to file a class-action lawsuit against him. The lawsuit alleges that Musk’s tweets and comments about DOGE amount to market manipulation, and it seeks $258 billion in damages. Musk’s legal team has dismissed the suit, describing it as “a fanciful work of fiction” due to the CEO’s “innocuous and often silly tweets.”

As July progresses, many will be watching closely to see if dogecoin can achieve the speculated price target of $0.10. With Elon Musk’s continued interest and influence, the future of DOGE remains uncertain but undoubtedly captivating for both investors and crypto enthusiasts.

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