Dogecoin surges 25% after Musk tweets that Tesla adopts payments in DOGE

Dogecoin soared 25% and briefly topped the $0.2 price range following Tesla’s announcement that it would begin accepting the meme coin. Tesla CEO, Elon Musk, tweeted that the automaker would finally begin accepting DOGE, a move that the meme coin community had greatly anticipated.

Musk, a big proponent of Doge, had teased this adoption numerous times in the past. Then in December, the news broke that Tesla was going to begin testing out Dogecoin payments using its merchandise. The price of the meme coin had also jumped following this announcement. This time around, it went up 27% to trade briefly above $0.2 after Musk’s tweet went live.

On Friday morning, Dogecoin, which had been trending low at $0.175, received a significant boost with the news from Tesla.

Tesla CEO Elon Musk tweeted: “Tesla merch buyable with Dogecoin,” delivering on a pledge he made in December 2021.

This sent the meme coin up towards a one-month high of $0.215. It has since lost its footing below this point but continues to trade above its one-week high at $0.192 at the time of this writing.

The knowledge that electric vehicle manufacturer Tesla would begin accepting DOGE payments is not news. The company had already announced that this was coming. This time around, it has officially started accepting DOGE payments. So yes, DOGE holders can now spend their favorite meme coin at the largest elector vehicle company in the world, but there’s a catch.

Currently, users are only able to purchase merchandise from Tesla using Dogecoin. However, it does not extend to its cars, as the company had announced that it was using this as a test run to see how accepting the meme coin for payments would work.

Musk helped Dogecoin soar about 4,000% in 2021 with tweets such as “how much is that doggy in the window?” and claims that it is the “people’s crypto.”

Tesla CEO is often criticized for his controversial tweets influencing cryptocurrency prices. Last December, a meme-coin named Santa Floki surged more than 18,000% in value over the next 48 hours after Musk posted a photo of his dog on Twitter.

However, Ethereum co-creator Vitalik Buterin predicts that Elon is not going to have this influence forever. The crypto market will eventually develop an “immune system” against such social media impacts that finally reduce the infamous volatility of the cryptocurrency market.