Since Monday, Dogecoin has recorded a rise of 35% in its value, as Elon Musk’s deal to take over Twitter is approaching its close.
The price of the crypto, which was branded after a dog meme went viral in 2013, tends to move in accordance with the comments of the chief executive of Tesla.
Doge goes up
On Wednesday, the chief executive of SpaceX changed his Twitter bio to add ‘Chief of Twit’, which saw a 10% rise in the value of Dogecoin.
Likewise, there had also been a rise in the meme token’s price back in April when the idea of adding dogecoin as a payment method for Blue, the subscription service of Twitter, had first been put forward by Musk.
However, June had seen dogecoin experience a sell-off, after Musk had decided to back out of his deal of purchasing Twitter.
But, the matter of the sale resulted in a battle between Twitter and Musk for months and now all signs indicate that Musk will close the deal by the deadline, which ends on Friday at 5 p.m.
If he does not, then the Tesla chief executive would have to face trial in a courtroom in Delaware.
It should be noted that there is another reason for the surge in the price of Dogecoin. There are rumors that Twitter has created a prototype of its own crypto wallet.
According to sources, the company had been working on a wallet prototype that would offer support for crypto deposits and withdrawals.
But, they did not clarify as to what cryptocurrency the wallet in question would support, or which network it would be compatible with.
A crypto wallet product has not been announced by Twitter as yet, but a tipping feature had been launched last year by the social media firm.
This feature enables users to use the platform for sending bitcoin. Ether had also been added to the tips feature back in February.
Elon Musk effect
It remains unclear as to what exactly resulted in Elon Musk showing his support for the meme coin in the first place.
The billionaire CEO of both Tesla and SpaceX has spent years expressing his support for the token. His tweets are often the reason why dogecoin experiences a massive surge in its prices.
These comments have also helped boost the interest of retail investors in cryptocurrency. As a matter of fact, Musk is often called the ‘Dogefather’ for the impact he has on the meme token.
Nonetheless, it is important to note that Musk is not the only one who has endorsed dogecoin. There are other celebrities who have also rallied behind it in the previous year.
These include Kiss bassist Gene Simmons, Snoop Dogg, and Mark Cuban, the owner of the Dallas Mavericks. At one point, Slim Jim, the beef jerky brand, had also jumped on the bandwagon.
One price surge of dogecoin that occurred last year even resulted in the trading app Robinhood crashing because of the traffic.