It didn’t take much time for the cryptocurrency asset Dogecoin (DOGE) to reach the 9.49% mark in the last 24 hours, before giving up some gains at $0.105 levels as per Coinmarketcap, a cryptographic token website. And all these are thanks to the controversial new owner of Twitter, Elon Musk. Musk day before yesterday revealed his plans for Twitter 2.0. “Musk’s influence on Twitter can not be ignored in the bear market. Most people are banking on the news creating hype and capitalising. It makes more sense to buy a cryptocurrency based on it’s fundamentals rather than Musk’s tweets,” Akshay Bajaj, CEO and co-founder, DeFiVerse, a cryptocurrency trading platform, told FE Blockchain.
According to the cryptocurrency analysts, DOGE was designed as a payment mechanism. “If Doge is integrated with Twitter’s payment ecosystem, it will create a mass use case for memecoin,” Sharat Chandra, vice president, research and strategy, EarthId, said.
As per industry experts, Musk has brought about various changes in Twitter since his takeover on October 28, 2022. “The impact can be seen on cryptocurrency and trading platforms too. New user signups are at an all-time high and user active minutes are also at an all-time high,” Gaurav Mehta, CEO, Catax, a cryptocurrency tax company, said.
Interestingly, Dogecoin has a market capitalisation of more than $85 billion, and trails behind it are Shiba Inu with close to $38 billion. Dogecoin, the largest memecoin was the only cryptocurrency trading in the green zone while others were under seer pressure. Meanwhile, data from Musk’s tweet also suggested that Musk’s takeover of the company has already made an impact, with the social media platform reaching an all-time high in terms of “new user signups” and “user active minutes.
According to Chandra, Musk’s version of Twitter will allow for payments, and Dogecoin is a leading candidate to replace Bitcoin as Twitter’s official cryptocurrency.