Dogecoin is rising as Elon Musk hints it could be used to buy Teslas

Topline

Meme cryptocurrency dogecoin rose on Thursday after Elon Musk hyped the Shiba-Inu-inspired token and hinted that it could be accepted as payment for Tesla cars in the future, the latest in a long line of endorsements from the billionaire as the crypto market collects and bitcoin rises to an all-time high.

Key facts

Dogecoin is up nearly 8% over the past 24 hours to around $0.18, and with a market cap of around $26.5 billion, the popular – and notoriously volatile – meme token is one of the ten most valuable cryptocurrencies.

The spike, largely an outlier among the tepid or stagnant gains of other leading cryptocurrencies over the past day, comes after Musk hyped the meme-based cryptocurrency before a crowd at a Tesla factory in Germany.

When asked whether the electric vehicle maker would accept Dogecoin as an official payment method for its cars, Musk said he thinks the company “should enable that at some point.”

Musk, who visited the Tesla Gigafactory near Berlin after an arson attack on a nearby electricity pylon halted production last week, said fans of the meme coin can already use it to buy Tesla merchandise.

The billionaire, a longtime enthusiast of the dog-inspired coin, revealed why he endorses dogecoin over other crypto tokens, explaining that while “a lot of rich people supported bitcoin,” the people working on the line in his SpaceX and Tesla factories were. asking him to support dogecoin.

“Doge is the people’s crypto, so I will support it,” Musk said.

Crucial quote

“Dogecoin to the moon,” Musk said in Germany, drawing a cheer from the crowd. “To the moon” is a phrase commonly used in the crypto community to indicate optimism or the belief of a strong upward price trend.

Important background

Musk’s hype of dogecoin marks a return to the frontlines for the billionaire after repeatedly pumping the meme coin on social media, media appearances — including an appearance on “Saturday Night Live” — and use of the “doge” meme which inspired the token to replace the iconic blue bird in the Twitter logo. He even has a pet Shiba Inu, Floki, who has inspired another popular meme cryptocurrency of the same name. Dogecoin is an incredibly volatile asset, even by cryptocurrency standards: huge price swings in a single day are not uncommon, and the token peaked at over $0.68 almost three years ago before plummeting below $0.10 in mid-2022. Musk has previously urged people to “invest cautiously.” Particularly for meme-based coins like dogecoin, it is not unusual for prices to change significantly and by tens of percent within a very short time.

Large number

$2.85 trillion. That is the total value of the cryptocurrency market measured by market capitalization. Bitcoin, which makes up about half of the overall market, hit an all-time high of more than $72,000 last week and has grown about 8% over the past seven days ahead of a looming halving next month. Other popular assets such as ether, Solana’s sol and Binance’s BNB have also soared in recent weeks and the market has largely recovered from a sub-$1 trillion crash last year.

Forbes rating

We estimate that Musk is worth $191.8 billion. His fortune comes largely from the series of companies he co-founded and runs, including electric car maker Tesla, rocket firm SpaceX, tunnel construction firm The Boring Company and brain implant firm Neuralink. Musk’s fortune makes him the third richest person in the world after a drop in Tesla shares relegated him behind Amazon founder Jeff Bezos, who is worth an estimated $194.8 billion.

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