After a decline to $0.37, the price of Dogecoin has recovered 32% above $0.50. What are the reasons behind the surge?
May 14, 2021, | AtoZ Markets – Elon Musk is back to talking about cryptocurrencies again. Tonight he unveiled on Twitter that he is collaborating with DOGE developers to improve the efficiency of the cryptocurrency:
"We are working with DOGE developers to improve transaction efficiency. Potentially promising."
The news sent the price of DOGE soaring, which quickly returned above $0.50 after hitting a low of $0.37.
The fact that the tweet uses the term "efficiency" suggests that Tesla could in the future add DOGE as a form of payment: yesterday the CEO revealed that the company is looking for cryptocurrencies that use less energy than Bitcoin.
TradingView responded to Musk's tweet by pointing out that Dogecoin's market cap grew by $10 billion in the immediate aftermath of the announcement. Its capitalization is currently around $69.3 billion - an increase of $21 billion in less than 24 hours.
Read also: Dogecoin Price Surges Thanks to eToro
Working with Doge devs to improve system transaction efficiency. Potentially promising.— Elon Musk (@elonmusk) May 13, 2021
Coinbase plans to list DOGE
Another reason for this sudden price increase could be the news that Coinbase plans to list DOGE on its exchange within the next 6-8 weeks.
JUST NOW: Coinbase to add Dogecoin in the next 6 to 8 weeks says Brian Armstrong on Q1 earnings call— Bloqport (@Bloqport) May 13, 2021
During a recent episode of CNBC's Mad Money broadcast, Coinbase CFO Alesia Hass was asked whether or not investors should take Dogecoin seriously. The woman replied that this decision is up to users only:
"We are a platform. We want to offer all assets that meet our listing standards, we want to be a place where it is possible to trade anything."
Dog-token to the rescue
Interest in Doge led to the creation of various imitations, including Shiba Inu (SHIB), Husky (HUSKY), and Akita Inu (AKITA).
Akita Inu's price rose 32,933% in 30 days, reaching an all-time high of $0.00002904 on May 11; the token then plummeted by 83% ($0.00000489) and subsequently surged by 165% to the current $0.00001295. According to Coingecko data, the volume of the cryptocurrency in the last 24 hours has been a whopping $323 million.
SHIB also attracted strong investor attention: Coingecko shows a volume of $5.1 billion in the past 24 hours. After peaking at $0.00003761, the token's price more than halved when Ethereum's well-known co-founder Vitalik Buterin donated part of his SHIBs to charity. Despite the volatility, Shiba Inu remains positive by 12,263% from the date of creation.
r/dogecoin tricks Google Images
Users of the "r/dogecoin" subreddit have collaborated to trick Google's image search system into showing a photo of DOGE when people search for "one dollar".
One of the biggest goals of the Dogecoin community has always been to reach a price of $1 per coin: who knows, maybe this funny joke has contributed in part to the recent rise.
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