Dogecoin gains 17% as Elon Musk is set to announce Twitter acquisition

The infamous memecoin, which is known to be Elon Musk’s favorite cryptocurrency after Bitcoin, is leading the charge, gaining over 17% today, despite the sea of red the cryptocurrency market is experiencing.

The cryptocurrency market capitalization is down 0.66% for the day as leading crypto, Bitcoin, traded as low as $38,300 today, as a result of a strong dollar index, a measure of the strength of the United States dollar.

Despite the decline seen in the top 10 cryptocurrencies, which ranges between 1%-4%, we have seen Dogecoin, make its way into the top 10 by market capitalization list as it ranks #10, with a market cap of $20.2 billion. The rally is as a result of an article by the Wall Street Journal, which states that the Tesla and SpaceX boss, is set to announce the acquisition of social media giant, Twitter, for $54.20 a share for a total of $44 billion, today.

What you should know

  • The WSJ article, citing people familiar with the matter, explained that Elon and the board of directors of Twitter, worked through the night to hash out a deal.
  • It also stated that assuming there is no, “last-minute snag,” the deal is expected to be announced after the market closes Monday, if not sooner.
  • The report mentioned that it is not clear why the total value of the deal has increased slightly from prior expectations, but it could be related to an updated share count.
  • Twitter’s share price is currently up 5.52%, currently trading $51.63 a share, as a result of excitement around the potential acquisition of the company by the world’s richest man.
  • Dogecoin, in 2022, has made it into the top 10 by market capitalization for the first time this year over the news.
  • Dogecoin’s price and Elon’s imminent takeover of Twitter are not directly correlated. However, some analysts say Musk’s repeated endorsement of the memecoin attracts speculation from crypto investors hoping for dogecoin to be included in Twitter’s long-term plans.
  • The reason for that mindset is as a result of Elon, teasing Dogecoin as a means of payments on Twitter in a tweet. He proposed dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features.

Tesla, one of Elon’s many companies, already accepts Dogecoin as a means of payment 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.

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