The price of Dogecoin ($DOGE) has doubled over the past month amid rumours that the meme coin might soon integrate into Elon Musk’s X platform.
This speculation was further fuelled on Monday when Musk shared an animation from X user DogeDesigner, depicting his former payments platform merging with the social media site he acquired in 2022.
Musk’s companies, SpaceX and Tesla, already accept Dogecoin for payments, which have been said to enhance the currency’s legitimacy and utility.
The speculation comes as Musk’s venture into social media, X Payments LLC, has expanded its operations, securing money transmitter licences in New Mexico, Oregon, and Illinois.
This expansion, announced on 20 March 2024, has increased the total number of states where X Payments is authorised to operate to 22.
Musk’s previous DOGE endorsements
Elon Musk’s relationship with Dogecoin is not new. His comments in the past have led to significant price movements for the cryptocurrency.
In 2021, Musk expressed his belief in Dogecoin’s potential to become a significant online currency, praising its user-friendliness and efficiency.
He humorously suggested that it could even become the official currency on Mars if SpaceX’s plans to establish a permanent human colony were realised.
Musk’s statement, “The most entertaining outcome is often the most likely”, coupled with his promotion of Dogecoin during his Saturday Night Live appearance, previously catapulted the cryptocurrency to a record price peak exceeding $0.70.
Dogecoin’s market performance
The market performance of Dogecoin has shown promising signs of recovery. The cryptocurrency has moved above its 50, 100, and 200-week simple moving averages, signalling a potential end to a 20-month period of consolidation at lower prices. This pattern is reminiscent of the trends observed in late 2020, leading up to an explosive rally in early 2021.
Currently, Dogecoin ranks as the eighth-largest cryptocurrency by market capitalisation, valued at $26 billion. It has seen a 43% increase over the last week and an 8% rise in the past 24 hours, with the price reaching $0.18.
Institutional interest in Dogecoin
Along with the Musk news, Coinbase, a leading US-based exchange, recently announced that its institutional sector had obtained regulatory approval to list the first leveraged contracts for Dogecoin, along with Litecoin ($LTC) and Bitcoin Cash ($BCH).
This follows Coinbase’s application with the US Commodity Futures Trading Commission (CFTC) to offer cash-settled futures for these tokens.
Coinbase said: “Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.”
