Elon Musk commented on the future of Dogecoin: “It has potential as a currency”

Despite crypto values plummeting in yet another bloodbath this year, Elon Musk has praised Dogecoin (DOGE), energizing supporters of the canine-themed coin.

Dogecoin co-founder Billy Markus tweeted on May 13th, “the reason I like dogecoin is that it knows it is stupid.” Elon Musk responded almost immediately, adding, “It has potential as a currency,” driving the doge community into an optimistic frenzy.

Billy Markus, also known on Twitter as “Shibetoshi Nakamoto,” co-created DOGE with Jackson Palmer, a former Adobe software engineer. Despite quietly pushing DOGE, Markus abandoned the project years ago, citing terrible experiences such as scams and a “sociopath” taking over the community.

Musk’s response, which has received over 50k likes as of writing, drew a lot of attention from numerous Dogecoin supporters who believed it would boost DOGE’s price.

While it’s amusing that DOGE is down nearly 82% after Musk shilled the coin on Saturday Night Live (SNL) last year, the Tesla co-founder has become a top influencer for the coin due to his pro-growth beliefs on cryptocurrency.

Musk commended DOGE as a preferable form of digital payment to Bitcoin (BTC) in an interview with TIME Magazine, in which he was named the 2021 person of the year. Later that year, he stated that Tesla would begin taking bitcoin payments for items, with intentions to do the same for Starlink.

The billionaire bought a large share in Twitter last month. On April 25th, he announced plans to buy the company for $44 billion and take it private, pushing DOGE up 34% on the news that he would accept the coin as payment on Twitter. While these are merely rumors, Musk has previously expressed interest in developing a Dogecoin-centered digital wallet or a full-fledged DOGE-based payment network that would be free for Twitter users.

However, the technology billionaire’s acquisition of Twitter has been postponed due to some issues related to the scam bot.

While it is difficult to anticipate the direction of price, it is safe to say that Musk will play a role in driving a price recovery as he continues to promote this meme coin.

At the time of writing, DOGE is trading at $0.09 after plunging as low as $0.07 on Friday, following a marketwide drawdown that has been fired up by UST’s de-pegging.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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