JAKARTA - The acquisition of Twitter by Elon Musk has put fresh air into the cryptocurrencycurrency of the cryptocurrency meme, which has been linked to fame by the richest man in the world.
The price of Dogecoin doubled after the Tesla tycoon completed his Twitter acquisition. Dogecoin was trading around USD 0.07 on October 27 before Musk tweeted "the bird was released" to announce its holdings. Five days later, the price was already USD 0.16.
That may not sound like much, but it gives cryptocurrencies that are very volatile with a market value of 21 billion US dollars, according to data platform CoinGecko.
Tidak buruk untuk coin yang dibuat sebagai "lelucon" yang menjeratkan spekulasi liar di pasar kripto dan disebut meme internet seorang dog Shiba Inu.
The Dogecoin trade around Elon's tweet has been a form of speculation that is favorable, said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds.
Musk has played a major role in the rise of Dogecoin since its lightweight launch by two software engineers in 2013. His tweet expressing support for coins, including those calling it "people's crypto", has helped its price rise, somehow, by 4,000% in 2021.
Crypto observers say the latest price spike, which comes after Twitter's deal, is driven by investor betting that Musk will make Doge part of the payment system on the platform.
"There is a lot of speculation that Twitter will provide a test bed for adoption and doge experiment for different uses," Dibb added, as quoted by Reuters.
Dogecoin has since lost some of its gains and hovered around $ 0.12, making it the eighth largest cryptocurrency, with a market capitalization of around US $ 16 billion, according to CoinGecko.
The meme coin, which is said to have reached a peak of $0.63 in May last year, but the macroeconomic opacity and apathy to the market are at risk of destroying it along with other leading crypto assets such as bitcoin and ether. Even after the latest rally, Doge fell 57% in the last 12 months.
Nonetheless, crypto market news site Coindesk said that double its price had made Doge the top player among 150 digital assets in the CoinDesk Market Index in October.
The share of the global crypto market cap of $1 trillion from the year to the end of October is 1%, a fraction of the 39% bitcoin-controlled, according to CoinMarketCap.
Doge has lifted other dog-themed coins behind it, such as Shiba Inu, which has the same motifs of Japanese dog types as doge and is designed to be compatible on the Ethereum blockchain. Shib, which trades for just US$0.00001, is now surging a third within days of Musk closing Twitter deals.
Unlike bitcoin, both doge and Shib have an almost unlimited supply, meaning it takes more than just speculative hoarding to increase their prices.
It is estimated that Musk will allow crypto payments with dog tokens triggered by his tweet last week about a picture of a Shiba Inu dog wearing a Twitter T-shirt.
But the initial rally stalled, with many crypto investors confused about how serious he was about dogecoin.
Musk, the world's richest man, called dogecoin a "crowd" on a May talk show last year, which immediately made the price fall.
Then in January this year, Tesla began accepting dogecoin as payment for its merchandise, such as a "Giga Texas" belt and a mini-model of electric vehicles. Even Musk's newly launched perfume "Burnt Hair" can also be purchased with doge.
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