Please ensure Javascript is enabled for purposes of website accessibility

Why the Price of Dogecoin Rose This Morning

By Bram Berkowitz - Jun 29, 2021 at 11:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dogecoin made more headlines with Tesla CEO Elon Musk continuing to tweet about the meme-inspired currency.

What happened

The price of the meme-inspired cryptocurrency Dogecoin (DOGE -3.69%) rose as much as 8% at one point this morning from levels seen last night, after several recent tweets from Tesla CEO Elon Musk.

So what

Musk and his large social media following have been major contributors the huge rise in Dogecoin, which at one point touched roughly $0.72 before falling with the broader cryptocurrency market. Dogecoin currently trades just under $0.27.

Recently, in honor of Musk's 50th birthday, a person sent a balloon of a Shiba Inu dog, the mascot and meme associated with Dogecoin, into space.

Musk a few days ago announced on Twitter that he had a new Shiba Inu named Floki, and yesterday, Musk tweeted out in support of proposed upgrades to the Dogecoin blockchain that would drastically cut transaction fees.

Green squiggly line trending up with lots of numbers in background.

Image source: Getty Images.

Now what

While all the Shiba Inu news may sound crazy, the power of the internet is all part of what has driven Dogecoin higher in the first place, so it's not a shock to see the token rising on news like this.

As I recently wrote, while I certainly enjoy following the Dogecoin bonanza and own a little myself, I do not see Dogecoin as particularly unique in the world of cryptocurrencies in terms of its capabilities.

The most important news recently, in my opinion, is surrounding the upgrade that would cut fees. With Musk firmly behind Dogecoin, perhaps it's possible that he and the developers will improve it from a technical standpoint to the point where its capabilities are unique among other cryptocurrencies. But until there is more proof of that, I am not planning to purchase any more in the near future.


Bram Berkowitz owns shares of Dogecoin. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dogecoin Stock Quote
$0.08 (-3.69%) $0.00
Tesla, Inc. Stock Quote
Tesla, Inc.
$911.99 (-0.84%) $-7.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.