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What caused Dogecoin to rise in price last week?

  • 7 March 2021
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Elon Musk has posted several controversial tweets about Dogecoin in the latest week. Each time, these tweets increased the price of this cryptocurrency. The price of Dogecoin has risen more than 80% in the last week. Several other celebrities, including American rapper Snoop Dogg, have joined the cast and have tweeted about Dogecoin.

According to the Cointelegraph, Musk has already praised Dogecoin. He tweeted, on 4 March 2020, that “the DOGE performed very well” and later tweeted that the Dogecoin team had the best currency on the market.

A user tweeted that about 50% of all Dogecoins stored in only 20 addresses, and one address alone has 36.8 billion Dogecoins.

Musk wrote in response: It seems a little too much. Last month, Elon Musk, CEO of Tesla and SpaceX, said in a statement that he did not care about bitcoin and supported Dogecoin. Elon Musk has purchased Dogecoins for $ 1.5 billion.

Dogecoin

Dogecoin

Why is Elon Musk a Dogecoin fan?

Dogecoin is a peer-to-peer cryptocurrency created in 2013. This cryptocurrency was published by software developer Billy Markus and Jackson Palmer. The logo of this cryptocurrency is made from a dog as an internet meme. Dogecoin co-founder Jackson Palmer has a close relationship with Elon Musk. The two have been doing a lot of work on Twitter to combat digital currency scams. According to many, the popularity and progress of Dogecoin has grown to such an extent that its founder, Billy Marcus, did not even think about it.

Elon Musk has repeatedly highlighted the fact that he is a Dogecoin fan. Last year, Dogecoin decided he needed a CEO. The network launched a poll on Twitter, calling on the crypto community to decide on its CEO. Options such as Vitalik Buterin (creator of Ethereum), Charlie Lee (founder of Litecoin), Marshall Heiner (Metal Payments) and Tesla CEO Elon Musk were some of the options.

Elon Musk received the most votes. He stated that this Altcoin was his favorite currency code. After this comment, Musk repeatedly confirmed Dogecoin. In March last year, he shared a tweet in appreciation of Dogecoin. He said in the tweet that they have the best coins.

Tesla CEO Elon Musk has publicly endorsed Dogecoin (DOGE) several times. In a previous tweet, Musk on July 18, 2020, further increased the price of this Altcoin and made a lot of money.

Dogecoin chart

Dogecoin chart

Why is the supply and inflation of Dogecoin so popular?

This is because Dogecoin currently has the highest number of currencies in circulation after BTT, at 128.27 billion. This cryptocurrency initially had no restrictions on the mining and supply of coins; Until Jackson Palmer, co-founder of Dogecoin, made changes to its protocol code in 2014. Thus, from that date onwards, every year only 5 billion new Dogecoins will be produced and marketed. To better understand annual inflation of Dogecoin, simply compare it to Bitcoin, which has a limited supply of 21 million Coins and currently has 18.6 million Bitcoin units in circulation.

“Although the nature of this cryptocurrency is inflation, its inflation is not irrational,” Elon Musk said in a tweet explaining the Dogecoin (DOGE) price growth factors. He said that this feature of Dogecoin is an advantage over Bitcoin, which has limited supply!

On February 11, 2021, the Dogecoin ranked twelfth in digital currencies in terms of market volume with a market price of $ 0.07217 $. Dogecoin, meanwhile, hit 0.0814 on February 7, setting a new historic high.

Elon Musk is known as one of the most popular and influential people in the field of digital currencies, and his comments about Dogecoin can be considered a positive sign for the whole market.

Dogecoin cap

Dogecoin cap

2 responses to “What caused Dogecoin to rise in price last week?”

  1. Herve Fodouop says:

    Good informations

  2. Yanga Jili says:

    Useful information indeed

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