Dogecoin Value Shoots Up Nearly 25% Following Elon Musk's Twitter Logo Change

Dogecoin's market value rises by nearly $4 billion following Elon Musk's Twitter logo change
The cryptocurrency's market valuation rose to $13.7 billion in total following the incident
The number allowed Dogecoin to become the seventh-largest cryptocurrency in the world

The value of Dogecoin, a form of cryptocurrency, skyrocketed by roughly 25% after Tesla and SpaceX CEO Elon Musk changed Twitter's logo to that of the crypto dog's image.

That particular move resulted in the market of the coin meme rising by nearly $4 billion, with individual values rising from seven cents to 10 cents at around 1500 EST. Before the Twitter logo change, Dogecoin's market valuation was estimated at roughly $10 billion.

Dogecoin Rises in Value After Twitter Logo Change

The rise in value has allowed Dogecoin to become the seventh-largest cryptocurrency with a market capitalization of $13.7 billion. Furthermore, a Dogecoin spinoff, the Shiba Inu token, which trades in fractions of cents, saw a value increase of 5.6%.

Dogecoin was first created as a cryptocurrency in 2013 by software engineers Billy Markus and Jackson Palmer as a joke when crypto was starting to boom. Despite lacking any underlying utility, the cryptocurrency is famous for having an enormous fanbase, as per TechTimes.

This later included Musk, who caused Dogecoin's value to double in October last year after he agreed to buy the social media platform Twitter for roughly $44 billion. Occasionally, the billionaire would show his interest in cryptocurrency.

One instance occurred in May 2021 when he announced that he planned to launch a SpaceX rocket that he dubbed "Doge-1" that was paid for entirely in crypto. And in January 2022, Tesla announced that it would start accepting Dogecoin as a valid form of payment for purchases.

In the same month as the Tesla announcement, Musk challenged fast-food franchise McDonald's to accept the meme crypto in exchange for filming himself enjoying a Happy Meal. But amid the entrepreneur's continued support for Dogecoin, he faces a $258 billion racketeering lawsuit related to the cryptocurrency that he had asked a judge to dismiss.

Read Also : Elon Musk Calls for AI Pause

Elon Musk's Support for the 'Meme' Cryptocurrency

The Twitter logo change was accompanied by a tweet from Musk, reiterating that he had done "as promised." Lawyers representing Musk and his company Tesla have called the massive lawsuit a "fanciful work of fiction" over their client's "innocuous and often silly tweets," according to CNN.

The party that filed the lawsuit against Musk pointed to the billionaire's hosting gig on "Saturday Night Live," where he portrayed a fake financial expert who said that Dogecoin is a "hustle." However, Musk's legal team argued that the plaintiffs failed to show how the statements favoring Dogecoin have defrauded any individual.

They also said the complainants failed to explain the risks the Tesla CEO allegedly had hidden from investors. Musk's lawyers noted that there was nothing wrong about showing support, whether in vocal or written words, to a legitimate cryptocurrency that continues to have a market cap of almost $10 billion, said Variety.