Dogecoin, the most popular meme-inspired crypto asset has been experiencing some ups and downs in its price recently. However, according to reports, there has been a substantial increase in Dogecoin transactions, thanks to an announcement made by Tesla.
The CEO of the electric car manufacturer, Elon Musk, has reportedly stated that the company will be accepting Dogecoin as payment for merch.
Elon Musk and Tesla are the two most prominent names in the crypto market and are capable of affecting the price movement for different digital assets. The evidence has been seen once again. Let’s find out the impact of Tesla’s support on the meme coin.
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How Has Dogecoin Been Affected and What is Tesla’s Stance?
Dogecoin is the most popular canine-themed crypto asset in the world at the moment. However, it may be hard to believe that this well-known meme coin that is now being supported by Tesla was originally created as a joke in 2013.
However, what started as just a joke soon became quite prominent in the crypto market for several reasons. One of the reasons for its popularity is that it has been widely supported by one of the most influential names in the crypto space, Elon Musk.
Musk has been in Dogecoin’s corner for quite some time and in the beginning, it greatly benefitted the price of the meme-inspired crypto. However, throughout this year the price of DOGE has been on a roller coaster.
Now, the price movement seen for Dogecoin is once again caused by Musk’s favorable statement.
As mentioned above, the CEO of Tesla has announced that the electric car manufacturer will be accepting DOGE as payment for merch. Shortly after this announcement, the price of the canine-theme coin was seen to increase. The meme cryptocurrency also saw massive transactions that increased 148% after Tesla’s announcement.
Social media also had a positive approach towards digital currency and thanks to that, DOGE’s social dominance increased 54% in the last 24 hours.
Here is a graph by CoinMarketCap that shows the price of DOGE in the last 24 hours.
Apart from announcing support for DOGE payments, Elon Musk also stated that he believes Dogecoin is better for transactions as compared to other digital currencies such as Bitcoin.
What Should New Crypto Investors Know?
There are numerous crypto assets available in the market for beginners to invest in. However, the value and significance vary from one digital asset to another.
While the meme coins Dogecoin and Shiba Inu are quite prominent, they are believed to be short-lived, as compared to major cryptocurrencies like Bitcoin and Ethereum.
As a beginner, the crypto asset you choose to purchase depends on your personal preference. However, it is important that you choose one of the largest crypto exchanges for crypto investing.
If you are looking to purchase digital currencies as such BTC or ETH, you can click on SwissBorg or Kraken (U.S. citizens).
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