Dogecoin (DOGE) surged more than 17% Monday, following several reports that said Twitter is poised to accept Elon Musk’s $43 billion bid, with the potential for the two parties to finalize a deal very soon. Dogecoin supporters are hoping that Musk could boost its usage after taking over the social media platform.
The meme token DOGE gained 14% over the past 24 hours, trading at around $0.15, according to CoinDesk data. Still, it is down about 80% from its all-time high in May 2021.
After Musk, Tesla CEO, made a bid on April 14 to buy the remainder of Twitter stock that he didn’t already own at $54.20 per share without saying how he would pay for it, the social media giant’s board had been expected to reject Musk’s offer, as it adopted a so-called “poison pill” plan. However, the company took a dramatic turn after Musk said last week he lined up $46.5 billion in the financing, The Wall Street Journal reported.
Dogecoin supporters are hoping that Musk, the long-time backer of the meme token, could boost its usage after he takes over the social media platform.
On April 9, Musk sent out a series of tweets about Twitter Blue, the social media platform’s subscription services that provide special features such as allowing users to add their NFTs as their profile pictures.
In one of the tweets, Musk wrote, “maybe even an option to pay in Doge?”
Although Dogecoin’s price and Musk’s imminent takeover of Twitter are not directly correlated, some analysts say Musk’s repeated endorsement of the meme coin attracts speculation from crypto investors hoping for Dogecoin to be included in Twitter’s long-term plans.
“The speculation is that advertisers could be able to pay DOGE for ads and for other uses on Twitter,” Kryptomon Chief Marketing Officer Tomer Nuni explained to CoinDesk earlier this month. “We have seen the same happening when Tesla revealed the ability to pay for its goods with DOGE. So the speculation could be around Musk’s businesses and stakeholdings starting to accept crypto, as Tesla does.”
Earlier this month, Musk teased DOGE payments on Twitter in a tweet, proposing Dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features.
Tesla already accepts DOGE payments on its online merchandise store. Musk has also previously lent support to Dogecoin development and adoption, such as a May 2021 tweet that saw Musk state he was working with Dogecoin developers to improve system efficiency.