Dogecoin, the famous memecoin, rallied by more than 100% on Friday. As unexpected as it was, this rally ranked Dogecoin as the 8th biggest cryptocurrency in the world. At the time of writing, Dogecoin is trading at a price of $0.1225 and has a 24-hour trading volume of $7.1 billion. Its sudden increase in trading volume indicates that this rally is a fake pump. Nevertheless, because of this pump, more than 62.48% of Dogecoin wallets are in profit. Around 2.58 million addresses bought DOGE before this cryptocurrency reached a price of $0.1160. Out of these 2.58 million wallets, more than 500,000 bought Dogecoin at an average price of $0.00016 and are still holding. Holding onto your investment even after a 1000x profit is literally what HODLing means.
Dogecoin hit its all-time high back on May 2021 when it reached a trading value of $0.73 per coin; this price put it at a market capitalization just above $85 billion. Even though Dogecoin doubled its price in a matter of days, it is still trading at a price 83% lower than its all-time high.
Why Did Dogecoin Go Up?
Because Elon Musk finalized his Twitter deal. Although it has been months since Elon Musk mentioned Dogecoin, many believe that his Twitter acquisition pumped Dogecoin. Crypto enthusiasts and Dogecoin HODLers love Musk, and we don’t blame them. The billionaire has always supported cryptos, especially DOGE. Because he always publicly supported Dogecoin and the project behind it, crypto enthusiasts are sure that he will implement DOGE payments in Twitter.
Although Musk has never said this himself, he continuously emphasizes the importance of revamping the Twitter verification process. While Musk made DOGE payments available for Tesla merchandise, people have a reason to believe that he will do the same for Twitter verification. Moreover, Musk could implement DOGE tips in Twitter, similar to the existing BTC tips. For your information, Musk plans to implement a $20 monthly subscription for verified users.
Will Dogecoin Continue to Go Up?
It depends on the market. Whether Dogecoin continues to grow or crashes down to its original price depends on several factors. Of course, if Musk creates new use cases for DOGE, this cryptocurrency’s trading volume is likely to go up and this might contribute to a positive price change. Nevertheless, these claims are just speculations as Musk never said anything about implementing DOGE in Twitter.
Even so, if another huge crash hits the crypto market, it is highly unlikely that Dogecoin is going to go up. Bitcoin’s performance still drives the market because of its huge market dominance.