Elon Musk Considers Accepting Dogecoin as Payment for Tesla Vehicles
On March 13, Elon Musk expressed his openness to accepting Dogecoin (DOGE) as a payment method for Tesla vehicles in the future. During a public address at a Tesla manufacturing plant in Berlin, Musk responded to an audience member’s question about the possibility of purchasing electric vehicles with DOGE. He stated that he believes it should be enabled at some point and added, “Dogecoin to the moon.” Musk explained that he began endorsing DOGE after interacting with employees on the production lines at his factories and seeing their support for the cryptocurrency. He described DOGE as “the people’s crypto” and expressed his willingness to support it if it was desired by his employees.
This is not the first time Tesla has shown interest in Dogecoin. In January 2022, the automaker started accepting DOGE payments for company merchandise.
Dogecoin Price Surges Following Musk’s Comments
After Elon Musk’s comments went viral, Dogecoin experienced a 14% spike in price. During the Asian trading session on Thursday morning, DOGE surged from $0.166 to $0.189. This increase comes as Bitcoin reached an all-time high earlier in the week, causing a ripple effect across the cryptocurrency market. Over the past two weeks, DOGE has seen a significant gain of 43%. However, it is important to note that despite this recent surge, DOGE is still down 75% from its all-time high of $0.731 in May 2021.
As of now, Dogecoin is trading at $0.184 and holds the tenth position in terms of market capitalization, which amounts to an impressive $26 billion according to CoinGecko.
Meme Coin Craze Continues
Not only did Dogecoin experience a price surge, but other meme coins also saw significant gains. Shiba Inu, PEPE, and BONK all experienced surges in value. PEPE rose by 17% in a day, dogwifhat (WIF) surged by a remarkable 35%, and BONK saw a 17% increase over the past 24 hours.
The combined market capitalization of all meme coins now stands at $65.5 billion, accounting for approximately 23% of the entire cryptocurrency market, as reported by CoinGecko.
Total Crypto Market Capitalization Approaches All-Time High
The total market capitalization of the cryptocurrency market is currently at $2.90 trillion, nearing its all-time high. Bitcoin reached a new peak of $73,700 during Thursday morning’s trading session in Asia. However, Ethereum has dipped below the $4,000 mark.
Other cryptocurrencies that performed well include Binance Coin (BNB) and Solana (SOL), which saw gains of 14% and 10%, respectively.
Hot Take: Elon Musk’s Support for Dogecoin May Boost Its Popularity
Elon Musk’s endorsement of Dogecoin as a potential payment method for Tesla vehicles has generated excitement and may contribute to increased adoption and popularity for the meme-based cryptocurrency. Musk’s previous involvement with DOGE, including accepting it as payment for Tesla merchandise, has already contributed to its recognition and acceptance within the crypto community.
If Tesla does eventually enable DOGE payments for its electric vehicles, it could further legitimize Dogecoin as a viable digital currency for everyday transactions. This development may also attract more retail investors who are drawn to the accessibility and fun nature of Dogecoin.
However, it is important for investors to approach meme coins with caution. The volatile nature of these cryptocurrencies can lead to rapid price fluctuations and potential losses. It is advisable to conduct thorough research and consider the risks before investing in any digital asset.
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