Elon Musk, the world’s richest person, showed his support for Dogecoin (DOGE) in the past. From calling DOGE the 'people’s crypto' to revealing his Dogecoin holdings, Musk’s actions have had a significant impact on the meme coin in the last few years.
In a recent tweet, the CEO of Tesla said that Dogecoin has the potential as a currency. While Musk’s previous statements impacted the price of the meme coin substantially, DOGE remained pretty much stable after his latest tweet.
In the past 12 months, Dogecoin has remained one of the worst performing digital currencies among the top 15. The crypto asset has lost nearly 80% of its value since May 2021. The latest crypto market correction has accelerated the bearish sentiment regarding DOGE.
“While it will take more than Elon Musk to shift dogecoin from its current position to a viable digital currency, adoption is underway with his firm beginning to accept the crypto asset for certain memorabilia products. Musk has also suggested Twitter could accept payments in dogecoin and also that he will work to combat crypto scams and other issues on the Twitter platform, which could be a boon for the sector,” Simon Peters, the Market Analyst at eToro, said.
Crypto Market
The crypto market witnessed a bloodbath last week following LUNA’s crash. Bitcoin almost touched a low of $26,000, which is its lowest level since the start of 2021. Despite some recovery over the weekend, BTC is still trading below $30,000.
“The last time the market faced adversity like this was the collapse of 2018. But, the makeup of the market is very different today than four years ago. Institutional investors now make up a much bigger proportion of the market, which has already had an observable impact upon not just prices, but the way the market moves,” Peters added.
