Dogecoin (DOGE) Surges After Elon Musk Purchases Twitter
Following the announcement of Twitter’s purchase by Tesla and SpaceX. CEO Elon Musk, Dogecoin has pumped over 19% in the last six hours.
Breaking Down the Surge
An announcement of Elon Musk’s $43 billion purchase of Twitter has left the world chirping after the news was confirmed. This move immediately had an impact on cryptos as their prices surged up. Dogecoin, the largest meme coin, was the biggest beneficiary of the move.
From a 25th April report done by Santiment, an analytics platform, the positive price change was + 19% within six hours. This price change continued its dramatic upward shift on the announcement date and closed at a + 36% within the first 24 hours. This value is a historical high for both Dogecoin and other major cryptos on the global exchanges.
Activities Coming Up To The Surge
The surge in Dogecoin prices is indirectly attributed to Elon Musk, one of the largest figures in the crypto word. News of the complete purchase of Twitter came about a few weeks after it was announced that Musk had obtained partial ownership of the crypto.
The second announcement led to the dramatic surge in trade volumes on all platforms where the dog-themed crypto; Dogecoin (DOGE) was traded. The Dogecoin trade volume soared to 882% on all exchanges.
On 4th April, Elon officially purchased 9.2% of the Twitter stock. This portion of the company was valued at $2.9 billion and was four times the shares owned by Twitter founder Jack Dorsey. The move made Elon the largest shareholder in the social media juggernaut.
A week later, the announcement was made that the social media platform was to be bought by Musk’s wholly-owned subsidiary. In the deal, Elon was slated to offer the price of $54.20 per share for the entire company. The deal was reported to be near completion as shareholders are set to receive a hefty sum to part with their stake in the company.
The “Elon” Effect
The purchase was set to transform the company and bolster its role in the crypto world. Twitter has been noted for its stance on creating a platform that enables payments to be made to users. In recent activities, Twitter was positioned to receive USDC stablecoin payments for ventures using the platform.
These changes were supported by Elon who also publicly suggested that Twitter take up using Dogecoin as the company’s official payment partner. Elon stated that the meme coin could serve well as a tipping medium for content creators on the platform.
Elon’s ownership of the social media giant is thus perceived to actualize the suggestion as he quickly takes over Twitter. Speculation suggests that Musk will achieve this vision of making Twitter a platform where content creators and other ventures can actively earn.
The speculation in turn, led to the increased trade volume of the memecoin. This increased interest created a domino effect that raised the price of Dogecoin and other major cryptos across all exchanges. While not yet actualized, the crypto community is banking on the development and betting on the “Elon” effect behind the takeover to bring in profits.
