Elon Musk Tweets Tesla to Accept Dogecoin, Coins Price Skyrockets

Dogecoin To Be Accepted at Tesla's New Futuristic Diner, Drive-in Theater
  • Elon Musk has often referred to Dogecoin as his favorite digital money.
  • The price of the cryptocurrency rocketed to record heights early this year.

On Tuesday, Elon Musk’s revelation that Tesla will accept Dogecoin as payment for certain products caused a 20% increase in the meme-inspired cryptocurrency.

“Tesla will make some merch buyable with Doge & see how it goes,” the electric auto maker’s CEO said in a tweet.

DOGE/USDT: Source: TradingView

Elon Musk has often referred to Dogecoin as his favorite digital money. Even addressed it on NBC’s “Saturday Night Live,” among other places. Moreover, Dogecoin was founded as a joke by Billy Markus and Jackson Palmer in 2013. The brand’s mascot is a Japanese Shiba Inu dog, which was the basis for the original “doge” meme.

The Rise of Dogecoin Over the Year

The price of the cryptocurrency rocketed to record heights early this year due to tweets by Tesla CEO Elon Musk and increased interest from a wave of amateur investors. Dogecoin was worth less than a cent at the start of the year. It had grown to a record high of about $74 by May. The cryptocurrency is worth less than 20 cents a coin, down more than 70% from its all-time high.

Dogecoin has been compared to “meme stocks” like GameStop and AMC, and some crypto investors believe it should not be taken seriously. Furthermore, Shiba Inu, a so-called meme token that claims to challenge Dogecoin’s domination, has emerged as a Dogecoin killer. Shiba Inu briefly surpassed Dogecoin as the 13th most valuable cryptocurrency by market valuation.