Dogecoin Soars 25%, Crosses $20 Billion Market Cap

Yesterday, Twitter confirmed its acquisition by Elon Musk in a deal worth nearly $44 billion. The announcement had a positive impact on the crypto market and specifically on Dogecoin (DOGE). The world’s largest meme coin jumped by approximately 25% within 24 hours.

Today, Dogecoin reached a high of almost $0.167, according to the data published by Coinmarketcap. With that, DOGE crossed the market cap of $20 billion for the first time in almost three weeks. The meme coin is now the 10th most valuable cryptocurrency in the world, just behind Cardano (ADA) and Terra (LUNA).

“Potentially related to the news of ElonMusk's nearly formalized purchase of Twitter today, Dogecoin has pumped +19% over the past six hours. We have historically seen that meme coins benefit from Musk developments, & we'll monitor this situation,” crypto analysis platform Santiment recently highlighted in a Twitter post.

Elon Musk has been one of the biggest supporters of Dogecoin. In March 2022, the CEO of Tesla confirmed that he is holding different crypto assets including Bitcoin, Ethereum and DOGE. In a Tweet last year, Elon Musk called Dogecoin “the people’s crypto.”

Meme Coins

Amid the retail frenzy in digital assets during 2021, meme coins gained significant popularity among users. DOGE and Shiba Inu witnessed monumental gains throughout last year. However, DOGE and SHIB saw consistent dips in the past 5 months. Despite the latest jump of approximately 25%, Dogecoin is still down by almost 50% compared to October 2021. A similar trend was witnessed across the Shiba Inu network. SHIB is now down by more than 60% from its all-time high in November 2021.

Despite price volatility, the adoption of DOGE and SHIB has increased in the past 12 months. Earlier this month, AMC mobile app started accepting Shiba Inu and Dogecoin for online payments.