Dogecoin begins recovery with speculation of Twitter creators being paid in DOGE
- Crypto Twitter is abuzz with speculation of creators receiving their payment in DOGE tokens.
- DOGE price started its recovery, yielding nearly 6% gains for holders this week.
- Analysts believe Dogecoin price rally is likely with the hype surrounding the meme coin.
Elon Musk, the owner of X (formerly Twitter), recently informed the crypto community that there will never be a crypto token for X. The social media platform will “never launch” a crypto token and this fueled the hopes of DOGE community members that expect Dogecoin to find utility for payments.
Crypto analyst and Twitter-based influencer, @CryptoKaleo, asked that he be paid his earnings from X, in Dogecoin. This further contributed to the hype.
DOGE price started its recovery this week, climbing from $0.0717 on Monday to $0.0753, at the time of writing.
Also read: Dogecoin dethrones Bitcoin in shorts liquidation as DOGE price moves closer to $0.10
Dogecoin price recovers riding the speculation in the community
DOGE price suffered a steep decline from $0.078 at the beginning of August to a low of $0.071 on Monday this week. Meme coins like Shiba Inu and PEPE, witnessed a rise in their popularity and social dominance – the share of posts about them compared to posts about other top cryptos – taking the spotlight, while Dogecoin faded into the background with a decline in its relevance across social media platforms.
Find out more about that here.
While Dogecoin’s social dominance has declined, the meme coin’s social volume has actually started a recovery. The on-chain metric, social volume, is indicative of the number of mentions of the meme coin on social media platforms. DOGE social volume started its recovery this week, as seen in the chart from crypto intelligence tracker Santiment. This suggests that whilst social mentions are high, they are not keeping up with up with other major cryptos.
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DOGE price v. social dominance v. social volume
X-based creator asks for payout in DOGE tokens
One of the reasons for the rise in social volume are the rumors that an increasing number of X developers are asking to be paid in Dogecoin, and that this might be indicative of wider adoption down the line.
@CryptoKaleo, a pseudonymous crypto analyst and Twitter-based influencer, for example, asked X to pay his earnings from the platform in DOGE tokens, in a recent tweet.
Pay me in Dogecoin.
— K A L E O (@CryptoKaleo) August 8, 2023
Thank you @elonmusk pic.twitter.com/z4k1pp7YeR
Kaleo’s request fed the growing hype among the DOGE community that Dogecoin could find application on X as a payment method. The hype has grown progressively more rampant as time has gone by.
Will DOGE price recover with the hype?
At the time of writing, DOGE price is up 41% from the June 10 low of $0.0531. The meme coin is trading at $0.0753 and has yielded gains for DOGE holders this week. With Bitcoin price rallying past the $30,000 level, there is a bullish sentiment among market participants. Find out more about this here.
Altcoins and meme coins are likely to benefit from BTC’s run up to the $30,000 level and yield further gains this week. Moreover, the hype surrounding DOGE’s acceptance as a payment method on X is likely to drive the token’s price higher in the short term.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
