In recent days, Dogecoin has been following a rather positive momentum in the cryptocurrency market. Two factors help to justify the spikes that suddenly appeared on the memecoin charts namely the forced liquidations of the asset and Elon Musk's tweets. It now appears that the latter may further amplify the positive trend that the memecoin cryptocurrency is currently experiencing.
Speculation on the challenge to McDonald's
In late January, McDonald's was the subject of rumors regarding the introduction of Dogecoin as a payment method in its restaurants. These have notably emerged following a challenge issued by Elon Musk to McDonald's, which even led to friction between the latter and Billy Markus, the co-founder of Dogecoin. For now, the fast-food giant has not followed up on the suggestion made by the Tesla CEO.
However, the interaction between Elon Musk and McDonald's, which was massively relayed on Twitter, acted as a catalyst to trigger the rise of the Dogecoin price. Within 24 hours of this exchange, the value of memecoin increased by 9%. This initial breakthrough was then supported by the liquidation of the asset and could continue with further interventions from Tesla's CEO.
Elon Musk's companies are embracing dogecoin
Last December, Tesla decided to accept memecoin as a payment method for some of its products. This past weekend, Dogecoin enthusiasts called out Tesla's CEO on the possibility that another of his companies, in this case, Starlink, could follow the movement initiated by the electric vehicle manufacturer. Elon Musk responded on Twitter with the wink emoji suggesting that he would support the idea.
The formalization of such a decision in February should allow Dogecoin to take a leap forward. Indeed, the cryptocurrency's value had jumped 20 percent in response to its acceptance as a payment method by Tesla. Elon Musk's tweet formalizing the use of Dogecoin to afford Starlink is therefore eagerly awaited by holders of the asset.
After an ATH of $0.74 reached in May 2021, Dogecoin has fallen drastically and is currently trading at around $0.14 with a market capitalization of $19 billion. However, it can count on Elon Musk's efforts to endow it with a utility to climb back up and reach new heights.
Source: Analytics Insight
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