- Musk’s tweets fueled uptrends, notably in Dogecoin, Shiba Inu, and PEPE
- Memecoins’ risky nature has led many to query its long-term viability
Within a day of Ethereum [ETH] spot exchange-traded funds (ETFs) being permitted, Dogecoin [DOGE] and Shiba Inu [SHIB] fell considerably on the charts, falling by 5% and 65% respectively.
However, simply when it appeared that these memecoins had been down and out, tech magnate and meme lover Elon Musk as soon as once more rescued them.
Musk: The memecoin lover
In a current X put up, Musk paid tribute to Kabosu, the unique canine behind the Dogecoin meme, who impressed the creation of DOGE in 2013.
Source: Elon Musk/X
Musk’s put up sparked a bullish development for each memecoins. DOGE, on the time of writing, was up by nearly 5% whereas SHIB was valued at $0.00002488 following an uptick of 4.5% in 24 hours.
Meanwhile, Dogecoin’s social quantity and dominance knowledge from Santiment confirmed that Musk’s tweet contributed to a hike in its social dominance and social quantity. However, this surge was short-lived as each social dominance and quantity have dropped considerably since.
Source: Santiment
This isn’t the primary time!
Elon Musk’s tweets have persistently had a major affect on Dogecoin, a development that has been evident since 2020.
In 2024 alone, Musk’s endorsement of DOGE has been a key contributory issue to its spectacular 68% surge because the yr started.
In addition to Dogecoin and Shiba Inu, Musk additionally tweeted about Pepe [PEPE], a frog-themed cryptocurrency, on 15 March. This tweet on X piqued the curiosity of his followers, underlining Musk’s affect on the cryptocurrency market. As anticipated, the tweet led to a outstanding 23% hike within the memecoin’s value, adopted by a major decline.
Why are memecoins so speculative?
This raises the query – Why are memecoins so delicate to mere tweets and endorsements?
Memecoins are primarily real-world jokes tokenized on the blockchain, which thrive on hypothesis very like common web memes. Similar to conventional memes, their worth skyrockets with elevated chatter in on-line communities.
Hence, memecoins’ long-term viability is unsure as they’re extremely risky, when in comparison with different cryptocurrencies. A single tweet from a key influencer can swiftly shift their prices, making them much more unpredictable than different cryptocurrencies.
Interestingly, this time Musk’s tweet not solely impacted DOGE, SHIB, and PEPE but additionally contributed to an general enhance within the memecoin market cap. It stood at $64.3 billion at press time, reflecting a +2.7% change within the final 24 hours, as per CoinGecko.
