Elon Musk says Dogecoin has the potential to be the world’s currency - Robotics Online

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Elon Musk says Dogecoin has the potential to be the world’s currency


20 May 2022

  • Elon Musk has said that Dogecoin has the potential to be a currency
  • Despite the praise, Dogecoin failed to make any significant gains
  • Dogecoin remains one of the worst-performing tokens in the top 15


Tesla’s CEO, Elon Musk, has been a proponent of Bitcoin, and he has continued to support the memecoin despite the recession happening across the market. Dogecoin has recorded a significant dip in prices, with its value dipping below $0.10 following the recent selloff across the market.

Elon Musk says DOGE can be used as a currency


Elon Musk endorses Dogecoin in his businesses, including Tesla, where the memecoin is used to buy merchandise. Musk has also referred to Dogecoin as the “people’s crypto”, adding that he has personal DOGE investments.

Musk’s endorsement of Dogecoin has triggered notable gains for the memecoin in the past. In May last year, Musk attributed Dogecoin's rally to a new all-time high after the Tesla CEO promoted the memecoin during the Saturday Night Live show.

Musk posted a recent tweet saying that Dogecoin had the potential to be used as a currency. Whenever Musk tweets about this memecoin, the prices record notable gains. However, his recent endorsement did not affect DOGE’s prices, as the price stagnated at current levels.

DOGE has failed to recover its losses over the past year. The memecoin is one of the worst-performing tokens among the top 15 cryptocurrencies by market cap. DOGE is currently sitting at 80% below its all-time high created in May last year. The recent recession across the market has only triggered a further bearish sentiment for the coin.

Despite Musk being unable to raise the value of Dogecoin, the memecoin has remained a top choice for people, and it still enjoys massive support. However, a rally to an ATH seems less likely with the memecoin hype dying down and the market witnessing a recession.

Simon Peters, a market analyst at eToro, said, “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.”

The collapse of the crypto market


The cryptocurrency market witnessed a massive crash last week triggered by the collapse of Terra LUNA and the UST stablecoin. Billions of dollars were liquidated from the market due to selloffs, as the market erased all the gains made in 2021. While there has been a slight recovery, none of the popular tokens is back to trading at previous highs.

Last week, Bitcoin dropped to below $27k, which triggered market panic, and most altcoins followed the downtrend, dipping to notable lows. While retail traders are still making up a significant size of the crypto trading volumes, institutional investors have now flocked the market. This has created a debate that the current bear market could be different from the ones witnessed in the past.
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