Following a tweet by Tesla CEO Elon Musk on Sunday, the price of Dogecoin soared by 25%.
It illustrates the ability of tech gurus to influence the crypto economy, on a whim.
You are what you Tweet, it seems, as Musk has driven an upsurge in the valuation of the meme coin, which has outgrown its anecdotal origins to become part of the cryptocurrency ecosystem.
Musk has been a long-time fan, albeit nobody has been able to tell if he was joking. In July 2020, the visionary endorsed Dogecoin as a “standard for the future” for the first time, spiking the price 14%.
But why would that be the case? In the lack of a central reserve to back Dogecoin's valuation, the survival and worth of the crypto token depends on one thing, according to cryptocurrency researcher Hasu: attention.
Yet, can Dogecoin remain a sustainable option for the future if it relies on Elon Musk being in a good mood? Hardly so, as even with Musk's endorsement, Doge is struggling to put a dent in the global crypto supply.
It's the 44th largest crypto and it still doesn't have the seriousness and purpose of Tron, Ethereum or Bitcoin which have all found real-life applications.
On the flipside, Dogecoin is a popular token to use in crypto casinos, which is definitely not a bad alternative. In fact, Dogecoin casinos are getting quite popular with some excellent options as BooCasino, 1xBit, and TrueFlip now out there.
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