Dogecoin’s Shiba Inu dog has taken over Twitter’s blue bird as the social media platform’s new logo, and this has helped the meme cryptocurrency add as much as $4 billion to its market value. On Tuesday, the token surged to 10 cents from 7 cents, with Elon Musk’s tweet indicating that he had delivered his promise of changing Twitter’s logo to Dogecoin’s dog.
Dogecoin was born as a satirical take on the cryptocurrency frenzy in 2013 and lacked any inherent utility. Despite this, it has grown in popularity and has become the seventh-biggest cryptocurrency by market capitalization, standing at $13.7 billion, according to data from CoinMarketCap.com. Before the news of Twitter’s logo change, its market value was around $10 billion.
Elon Musk, the second-richest person in the world, is a vocal proponent of cryptocurrencies and has heavily influenced prices for Dogecoin and Bitcoin in the past. He has been dubbed “the dogefather” by retail traders, and his tweets have been known to move markets.
In October, Dogecoin more than doubled after Musk announced a $44 billion deal to take over Twitter. Cryptocurrency exchange Binance, which invested $500 million into Musk’s buyout of Twitter, had said it was brainstorming strategies on how blockchain and crypto could be helpful to Twitter. However, a year later, Twitter has yet to announce any crypto-specific initiatives, and it remains to be seen whether the appearance of the Dogecoin logo is more than a joke.
Meanwhile, the Shiba Inu token, a spinoff of Dogecoin that trades in fractions of cents, rose 5.6% to $0.000014 on Tuesday. It is a new cryptocurrency that was launched in August 2020 and has been growing in popularity among investors. However, it still has a long way to go before it can reach the level of mainstream adoption that Dogecoin has achieved.
In conclusion, the influence of social media on cryptocurrency prices cannot be underestimated. Elon Musk’s tweets and Twitter’s logo change have had a significant impact on Dogecoin’s market value, and it remains to be seen how the cryptocurrency will perform in the long term. As for the Shiba Inu token, it is still a relatively new player in the cryptocurrency market, and its future success is still being determined. Nevertheless, it is clear that cryptocurrencies continue to attract the attention of investors and are here to stay.