Dogecoin Spikes As Elon Musk Maintains Faith In The Cryptocurrency.
Following a couple of tweets from Elon Musk, Dogecoin has seen a recent rise in value after having dropped to near-record lows.
On Sunday, Dogecoin rose over 10% from its near-record lows after Musk stated that he would continue to buy the cryptocurrency. Musk used his Twitter account to say,
“I will keep supporting Dogecoin.”
A reply to the tweet called on Musk to keep buying Dogecoin to which he replied, “I am”.
Musk’s tweets caused the coin to rise over 10% in an hour to $0.056. In the 24 hours following the tweets, Dogecoin gained around 8.5% helping to compensate for the cryptocurrency’s steep falls during the previous month.
The Dogecoin spike has coincided with a recovery in other cryptocurrencies that have also been struggling after substantial losses.
By the time of this writing, Coindesk had Bitcoin selling at around $20,400 after slipping below $20,000 on Saturday. The currency has been on a 12-day losing streak that had it dropping as low as $17,600 at one point.
The gains are however only a drop in the bucket compared to the losses cryptos have suffered this year. Dogecoin is still down by 67% while Bitcoin and Ethereum are down approximately 70% and 75% respectively.
Dogecoin was initially started as a joke but has gained a lot of traction and fans around the world since Musk became a supporter of the coin in 2019. The coin has received a lot of criticism and is not considered a good investment by some financial experts because it has no use cases.
Last year, however, the creators of Dogecoin told Decrypt that they were working with Musk to create the coin a more affordable and environmentally friendly alternative to bitcoin.
Dogecoin’s value has never recovered since Musk jokingly referred to the coin as a “hustle” on Saturday Night Live in May 2021. The coin plunged from record highs of $0.72 to $0.33 in a week.
Following news of Musk’s plan to buy Twitter for $44 billion, the currency rose because the coin’s value appears to be heavily influenced by Musk’s words and actions.
Last week, Musk was sued by a Dogecoin investor for roughly $260 billion for allegedly running a “pyramid scam” by misrepresenting the coin to have any value in order to pump up its price.