The price of Dogecoin has risen by more than 36% over the last three weeks. As of March 13, DOGE was trading at $0.1116 compared to today’s price of $0.1525.
The bullish trend has continued into this week. The meme coin started the week on a 2% surge in the early hours of Monday morning before slightly pulling back in the rest of the day. Today, on Tuesday, its price had registered a 5.67% rise at the time of writing.
In this article, we shall focus on why the Dogecoin price is rising.
Why is Dogecoin (DOGE) price rallying?
Dogecoin has been in the limelight for a variety of reasons. However, one among them stands out and that is its association with SpaceX and Tesla founder, Elon Musk. Musk has been a major champion for the meme coin and one of his companies, Tesla, now accepts $DOGE as payment for its merchandise.
Yesterday, Monday, April 4, 2022, Elon Musk purchased 73, 486,938 Twitter shares worth about $3 billion making him the largest Twitter shareholder.
Elon Musk is already making twitter a better place pic.twitter.com/9rTgRXoYTe
— Zero HP Lovecraft 🦅🐍 (@0x49fa98) April 4, 2022
Prior to the move, Musk had criticized Twitter for transparency and freedom of speech issues.
Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy.
What should be done? https://t.co/aPS9ycji37
— Elon Musk (@elonmusk) March 26, 2022
The tweet criticizing Twitter had come after Elon performed a survey asking people whether they believed Twitter rigorously adheres to the principle of “Free speech is essential to a functioning democracy.”
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
$DOGE tips on Twitter
After Elon Musk purchased the Twitter Shares and became the largest shareholder in the company, the Twitter community went crazy with most people suggesting that people should expect Musk to introduce $DOGE tips on Twitter.
Elon Musk has purchased a massive 9.2% stake in Twitter making him the company’s largest public shareholder
– Free Speech and open dialogue
– Less crypto spam bots
– A #Dogecoin tip jar!
— 💸💸💸 (@itsALLrisky) April 4, 2022
This notion by people that since Elon Musk owns Dogecoin and has now purchased Twitter, he may try and integrate the two has created a lot of attention for Dogecoin leading to an increased trading volume and a hike in its price.
Twitter venturing into dApps
Elon’s purchase comes at a time when the platform is venturing into decentralization. Last year in November, Twitter announced that it had launched a crypto dedicated team that will direct all its energy on Twitter venturing into the dApps space.
Tess Rinearson, Twitter Crypto leader, was given the responsibility of setting the strategy for the future of crypto on Twitter as the team works on exploring how to incorporate decentralized technology and its infrastructure.
All these developments come amid Crypto enthusiasts’ push for decentralized social media platforms.
A thought experiment penned by Orange Paper showed that if Bitcoin’s invention preceded that of Twitter, then Twitter’s evolution would have followed the path of crypto decentralization a long time ago.