Meme coin Dogecoin (DOGE) saw a sharp price surge on Tuesday when Tesla CEO and billionaire Elon Musk revealed that the token would be accepted for some selected purchases.
According to TradingView data, DOGE/USD gained nearly, making it the only cryptocurrency to increase from the top-10 crypto list.
The meme-based altcoin had been lagging behind Bitcoin (BTC) and other large-cap tokens this week, but a reversal delivered DOGE holders a 10% weekly gain.
Following Musk’s announcement that the automaker would soon begin taking it for its merchandise, DOGE made a move. Musk, also called Dogefather, tweeted, “Tesla will make some merch buyable with Doge and see how it goes.”
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
Will Tesla adopt Dogecoin properly after ditching Bitcoin?
Tesla takes the unique step of accepting only Dogecoin out of all the cryptocurrency options available. Musk runs the danger of enraging Bitcoin supporters after previously allowed and disallowed Bitcoin purchases for Tesla automobiles due to alleged environmental issues. The company, however, said that it would reconsider Bitcoin payments in the coming days.
As TheCoinRise reported earlier today, Musk, after being named Time Magazine’s “Person of the Year” this week, stated that Dogecoin is “better suited for transactions” than Bitcoin.
“The overall transaction flow that you conduct with Dogecoin, like transactions per day, has a far bigger potential than Bitcoin,” he stated, adding to a long list of prominent support for DOGE.
When it comes to a broader altcoin resurgence, analysts are pessimistic. With Bitcoin retaining its 40% market cap dominance while failing to reverse its downward motion, there is little reason to believe that bagholders will see fresh profits this year. Most of them believe that the bull run is going to extend to 2022.
After correcting, DOGE/USD was back below $0.20 at the time of writing and is trading around $0.19. Despite losing its craze along with rival meme coin Shiba Inu surpassing its market cap, Dogecoin is still at the 4th position in the top 10 news searches on Google this year.