Dogecoin shines as Elon Musk shows his support
Dogecoin (DOGE) ended its multi-week downtrend on Thursday, May 12, as the meme coin rebounded 30% in the past 24 hours. The trend reversal coincided with Elon Musk expressing his support for the famous DOGE.
The billionaire CEO of Tesla (NASDAQ:) has been hailed as the crypto with the most potential as a currency. The potential future owner of Twitter (NYSE:) shared this view in response to Dogecoin creator Billy Markus, aka Shibetoshi Nakamoto, who explained why he loves Dogecoin.
“The reason I like dogecoin is because it knows it’s dumb,” wrote the pseudonym Shibetoshi, to which Musk replied within minutes, “It has potential as a currency.” .
the reason i like dogecoin is because he knows it’s dumb
— Shibetoshi Nakamoto (@BillyM2k) May 12, 2022
Shibetoshi expressed his appreciation for Musk’s sentiment, saying he appreciates “that something stupid can also have a purpose and be successful.”
The price of Dogecoin immediately reacted to the Twitter exchange, inflating by 5% from a value of $0.08052 to $0.08472, according to CoinMarketCap. After a brief correction, it continued to rise at a similar pace and sits at $0.9114 at the time of this writing.
The rally led to a 17.36% increase in the market value of Dogecoin, joining the slight recovery of other major cryptos as the market capitalization of the cryptocurrency as a whole jumped 13% to 1.3 trillion. dollars in the last 24 hours.
LUNA Collapse Triggers Massive DOGE Transfers
Despite today’s rally, the recent turmoil in the crypto market has evoked major reactionary moves from the Dogecoin whales.
Yesterday, nearly $233 million worth of Dogecoin was transferred from an unknown address to an anonymous wallet in a single transaction. As reported by Dogecoin Whale Alert, over 20 massive transactions were made yesterday, as millions of Dogecoins were transferred from an array of smaller wallets to unknown Dogecoin addresses.
A similar trend was noted earlier this year when around 40,000 wallets deleted their DOGE holdings over a 10-day period. The sharp decline in the number of Dogecoin holders suggested that a number of bigger whales simply hoarded DOGE coins.
Why should you care
Is this the return of the Dogefather? Last year, the crypto space named Elon Musk “the Dogefather” after his consistent endorsement of Dogecoin via social media. Later, Musk appeared to drop Dogecoin and formed a close relationship with its competitor Shina Inu (SHIB). However, with the release of details of his deal with Twitter, Musk appears to be once again focusing on the pioneer coin, hinting that DOGE could become a potential currency for Twitter subscription services.
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