Cryptocurrency Dogecoin surges briefly due to Elon Musk
Cryptocurrency Dogecoin (DOGE) is traded at $0.111 at 4:10 UTC on a primarily flat crypto market. During Asian trading hours on Monday, Dogecoin (DOGE) rose 10% after Tesla CEO Elon Musk announced in a tweet that he is not selling his crypto assets, including DOGE. Following Musk’s tweet at 4:11 UTC, in which he stated that he would continue to hold DOGE, ether, and bitcoin, it soared to $0.122 at 4:17 UTC.
Automated trading algorithms that track token mentions from popular accounts on social media platforms like Twitter are most likely to blame for the rise. Musk’s Twitter account, for example, has almost 77.6 million followers.
Several times, Musk has mentioned DOGE in his tweets. He tweeted a picture of a rocket next to the moon in February 2021, followed by a one-word tweet that said “Doge” – a play on the phrase “going to the moon,” a metaphor for an asset-price increase. Musk announced in May 2021 that he was working with dogecoin developers to increase system efficiency, causing DOGE values to skyrocket by 22%.
As previously reported, Musk’s Tesla began accepting DOGE payments on its goods site earlier this year. DOGE payments are still operating, with things like the “Giga Texas Belt Buckle” and others available in both US dollars and DOGE.
Also, read – All you need to know about Dogecoin
What exactly is Cryptocurrency Dogecoin?
Cryptocurrency Dogecoin is similar to Bitcoin and Ethereum, but it’s not identical to either of these prominent coins. Dogecoin was named after a once-popular meme and was designed at least in part as a lighthearted joke for crypto enthusiasts. Despite its strange genesis story, Dogecoin exploded in popularity in 2021, becoming the fifth-largest cryptocurrency by market capitalization.
Cryptocurrency Dogecoin is like Bitcoin and Ethereum. It is based on blockchain technology. Blockchain is a decentralized digital ledger that stores all transactions conducted with a decentralized digital currency in a distributed, secure manner.
Cryptocurrency Dogecoin blockchain record, frequently updated with all new transactions in the cryptocurrency, is carried by all holders in an identical copy. The blockchain network of Dogecoin, like those of other cryptocurrencies, uses encryption to keep all transactions secure.