Following the announcement that Elon Musk had purchased a 9.2 percent interest in Twitter earlier this week, Dogecoin soared by almost 10%. While there is no clear link between the price increase and the business magnate’s purchase of Twitter shares, given the billionaire’s affinity with the meme coin, it is not unreasonable to suppose it was driven by it.
Elon Musk purchased roughly $3 billion in Twitter shares on Monday, according to a regulatory filing, making him the company’s largest stakeholder. Following the announcement, the leading meme coin increased by nearly 12%, from $0.13 to $0.156.
While there appears to be no direct link between the stock acquisition and the cryptocurrency, it is unexpected that the news has boosted the meme coin’s value, even as proponents increasingly predict a $1 DOGE price by the end of the year.
A week ago, the billionaire began a campaign on Twitter to promote free expression, implying that he was considering starting a new platform or purchasing Twitter. In response to a comment on one of Musk’s tweets, the billionaire said he would be happy to add support for Dogecoin as a tipping currency on Twitter for millions of users.
The Tesla CEO has long been a backer of the meme coin, referring to it as “the people’s crypto.” Several analysts have attributed the asset’s significant price increases in the last year to Musk’s public backing and influence. Elon Musk claims that the meme coin possesses all of the necessary properties to function as a medium of trade, a quality he believes Bitcoin and Ethereum lack.
Musk, on the other hand, has been open about his support for the asset. Tesla said in January that the meme coin would be accepted as payment for online merchandise. Musk also said that he is working with developers on the project to make the network’s transaction process even more efficient for users.
With all of this in mind, it’s no wonder that Musk’s increasing investment in Twitter, the popular microblogging network, would boost demand for the digital currency. DOGE is now trading at a price of $0.143. Dogecoin is down 1.83 percent in the past 24 hours and up 3.83 percent in the last seven days, according to CoinMarketCap statistics.