According to data from CoinGecko, a digital asset tracking platform, Dogecoin (DOGE) has surpassed Cardano (ADA) in market capitalization. This surge in the meme-inspired cryptocurrency’s value is attributed to tweets from billionaire Elon Musk.
Dogecoin’s Sudden Rise Fueled by Elon Musk
In the past week, Dogecoin (DOGE) has seen a nearly 20% increase in value, with a 9% increase in just the past 24 hours. This has propelled it to become the eighth-largest cryptocurrency by market capitalization, surpassing Cardano, also known as the “Japanese Ethereum.” Currently, DOGE is trading at around $0.08.
Dogecoin’s recent rise in value can be attributed to a tweet from the owner of Twitter, which hinted at a possible integration of DOGE into Twitter’s payment system. This tweet, which featured a new logo shared by a Dogecoin designer, sparked investor interest and led to the recent rally. However, it is still uncertain if this rally will continue.
— DogeDesigner (@cb_doge) July 25, 2023
Members of the cryptocurrency community have interpreted the use of the letter “X” in Twitter’s new logo as a reference to the platform’s rebranding efforts, while the letter “D” is seen as a nod to Dogecoin. Given Elon Musk’s past public support for Dogecoin, these seemingly small gestures have sparked new speculation about his intentions and their potential impact on the meme coin.
While the digital asset market has shown mixed results, Dogecoin has experienced a resurgence. According to CoinGecko data, Bitcoin (BTC) has fallen to below $29,000, while Ethereum (ETH) and Binance Coin (BNB) have remained relatively stable. In contrast, Cardano (ADA) has seen a 2.3% decrease in value over the past week, causing its market capitalization to fall below that of Dogecoin.
The recent surge in Dogecoin’s value highlights the impact that influential individuals, such as Elon Musk, can have on the volatile meme coin market. Despite Musk’s continued support for Dogecoin, the cryptocurrency is still down 90% from its all-time high in May 2021. It is unlikely that Musk’s casual mentions and hints will lead to another significant rally.