Elon Musk’s endorsement of Dogecoin has had a significant impact on the popularity and cultural significance of the cryptocurrency.
An analyst predicts that both Dogecoin and Shiba Inu may experience a rally, but they are unlikely to reach their previous all-time highs.
Elon Musk, the CEO of Tesla, has been a strong supporter of Dogecoin, and his influence has propelled the asset to new heights. His involvement with the cryptocurrency dates back to 2019 when he declared Dogecoin as his favorite crypto in response to a tweet. At that time, Dogecoin was trading at $0.002552. If someone had invested $100 in the asset then, they would have seen a return of $3,299.38 based on the current price. Dogecoin reached its all-time high of $0.07376 in May 2021, following one of Musk’s tweets.
Musk’s most recent mention of the meme coin came in April 2023 when he offered a million Dogecoin as a reward for proof of an emerald mine connected to his family.
On June 19, 2023, Musk reassured his followers on X (formerly Twitter) that he would continue to support Dogecoin. However, Musk has faced challenges with his Dogecoin-related tweets, including a lawsuit filed by Doge investor Keith Johnson. Johnson accused Musk of operating a “Dogecoin Crypto Pyramid Scheme.” The lawsuit was filed as a class-action suit in a New York court.
Market analysts believe that Elon Musk’s impact on the meme coin goes beyond price volatility. They argue that his constant tweets about Dogecoin have contributed to its popularity and cultural relevance, leading to increased mainstream adoption. Leveraging this popularity, Dogecoin has been able to establish significant partnership agreements with well-known brands.
In a recent report by Crypto News Flash, luxury car manufacturer Ferrari announced that it now accepts Dogecoin as a payment option in the US. In October 2021, Dogecoin emerged as the most searched cryptocurrency in the US, according to Google Trend data. States such as Illinois, Florida, Hawaii, and New Jersey topped the list, with an average of 7 million searches related to Dogecoin. Around the same time, Musk tweeted about his consideration of a new university where tuition would be paid in Dogecoin, as reported by Crypto News Flash.
At the time of writing, Dogecoin was trading at $0.142649, experiencing an 18% surge in the last 24 hours and a weekly return of 67%. Its 24-hour trading volume has also seen a significant increase of $5 billion, representing a 59% rise.
Crypto analyst Altcoin Sherpa believes that both Dogecoin and Shiba Inu have the potential for a bullish run. However, he warns that these meme coins may not reach their previous all-time highs.
Altcoin Sherpa states that due to their large market caps, Dogecoin and Shiba Inu are unlikely to experience the same exponential growth they did in 2021. Instead, they are expected to trade like established, highly liquid coins on centralized exchanges. However, Altcoin Sherpa sees potential for both coins to have significant price increases sometime in 2024-2025, after nearly two years of accumulation. He plans to wait for the first major price movement before making any trades.
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