Hot topics close

Dogecoin: Why did it spike? Why did the value rise?

Dogecoin spiked in price due to Tesla CEO’s tweet about buying Tesla with Dogecoin.

Dogecoin jumped in value Friday after Tesla CEO Elon Musk said Dogecoin can be used to buy Tesla merchandise.

The news: Musk said on Twitter Friday morning that Tesla merchandise can be purchased with Dogecoin, the meme-based cryptocurrency that went viral in 2021.

What he said: “Tesla merch buyable with Dogecoin,” Musk said.

What happened: Dogecoin jumped $0.20 at around 1 a.m. EST. The coin jumped 9% by 7 a.m. on Friday morning, too.

What you can buy: Per CNBC, there are already some details about what you can buy from Tesla.

  • Tesla’s Cybertruck whistle costs 300 dogecoins (so about $59).
  • Tesla’s Gigafactory belt buckle costs 835 dogecoin (about $164).

Flashback: Musk has made headlines about Dogecoin by praising the cryptocurrency. He once released a poll that asked if Tesla should accept Dogecoin for people to buy Tesla products. There were more than 3.9 million votes at the time it was released, with 78.2% saying “Yes.”

Why this matters: Musk’s tweets have often led to spikes in value for Dogecoin. The meme-based cryptocurrency relies on social media hype and discussion to earn value, as I wrote for the Deseret News. Musk’s tweets are a huge part of that, as his tweets have often led to these jumps before.

  • “Tweets from Musk and surging interest from a wave of amateur investors fueled a speculative frenzy in the cryptocurrency earlier this year, driving its price higher,” per CNBC.
Similar shots