Elon Musk sent the Dogecoin price value soaring following his latest tweet, with the meme coin's market value spiking at $10 billion on Friday. Another bigger spike on Dogecoin might happen soon.
In these last few days, the internet has been flooded with the latest news on the Dogecoin cryptocurrency. What started as an internet joke had already reached a trading value of over $0.60 last week. Enthusiasts and investors, who are generally at odds, both gambled in the Dogecoin market value. It was a heated debated if the cryptocurrency could even break through a $1 value.
Unfortunately, Elon Musk's "Saturday Night Live" hosting did not help Dogecoin. His comment on the meme-inspired cryptocurrency as a "hustle" led to its 40 percent decrease in value. However, Musk dropped another tweet that had investors reconsidering and the Dogecoin price increaing yet again.
Elon Musk Tweet Hints Upcoming Boom
First, Elon Musk dropped a new and unexpected tweet that had investors buying the Dogecoin at an incredible rate. The Tesla CEO tweeted that he is "Working with Doge devs to improve system transaction efficiency. Potentially promising."
Working with Doge devs to improve system transaction efficiency. Potentially promising.— Elon Musk (@elonmusk) May 13, 2021
Hours later, he tweeted an image from "The Hitchhiker's Guide to the Galaxy" featuring the message: "As always: DON'T PANIC!" No further subtext was given to what Musk was warning his followers about.
As always pic.twitter.com/gtFmtokzEZ— Elon Musk (@elonmusk) May 13, 2021
No official confirmation was found about this transaction. Gizmodo tried reaching out to Tesla for further clarification. However, no response was given. With that said, it remains impossible to tell if Musk is making a prank or being entirely serious with this announcement.
The market cap of Dogecoin spiked $10 billion after this tweet. pic.twitter.com/cqMA1irxSm— TradingView (@tradingview) May 13, 2021
Regardless, it remains a fact that the Dogecoin value spiked by 18%. TradingView tweeted that "The market cap of Dogecoin spiked $10 billion after this tweet." The tweet showed an image and indicator when Elon made his announcement and how the stocks rose.
If Musk's announcement holds true, Dogecoin shows serious potential for bigger transactions in the future. Aside from its erratic monetary value, Hypebeast reported about SpaceX investing Dogecoins to fully fund the "DOGE-1" satellite launching to the moon. As a result, Dogecoin might have another market value spike that is bigger than the last time.
Dogecoin Price Prediction Warning
Investors have warned against the dangerous nature of the meme coin. Dogecoin continues to grow in popularity and market value. Nonetheless, it comes with a level of volatility.
Michael Novogratz, CEO of the cryptocurrency investment firm Galaxy, has warned that Dogecoin is a "retail frenzy" where value easily fluctuates at the moment. He also noted how it's the exchange rate is "fueled by mania." Unlike Bitcoin and Ethereum, which have been around for far longer and established their systems, Dogecoin's network is immature and lacks proper infrastructure and development.
Dogecoin still shows the potential of exceeding $1 value, especially with the direction Musk is hinting. Buit for the question of how long that value would last, professionals say it is unlikely. If you plan to invest in Dogecoin, watch out for the potential spike in the coming months.
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