What happened
The price of the meme-inspired cryptocurrency Dogecoin (DOGE -0.40%) traded more than 9% higher over the last 24 hours as of 11:04 a.m. ET on Tuesday, after news came out showing that Tesla founder and Dogecoin bull Elon Musk has taken a big stake in Twitter.
So what
Yesterday, filings from the Securities and Exchange Commission (SEC) disclosed that Musk had taken a 9.2% stake in Twitter. Today, filings showed that Musk would join Twitter's board of directors.
Image source: Getty Images.
Musk has been a longtime supporter of Dogecoin and is one of the main influencers who really brought the token to popularity at the beginning of 2021. He would often tweet about how he liked Dogecoin and thought it had potential, so perhaps the market sees some kind of correlation.
Yesterday, transactions of at least $100,000 into Dogecoin jumped 110%, according to crypto analytics website IntoTheBlock.
Yashu Gola, a financial analyst for the website CoinTelegraph, wrote earlier today that Musk could potentially accelerate crypto initiatives on Twitter and perhaps lead to some kind of integration of Dogecoin on the platform. Gola also wrote that based on chart trends, a 150% rally for Dogecoin is a possibility.
Now what
I don't personally view Dogecoin as a worthy investment, and it's still unclear if Musk can really drive crypto initiatives at Twitter. But considering that he has been one of the main reasons behind the token's rise to popularity, I can see why the market views this as good news for Dogecoin.
