Dogecoin surges 10% on X Payments speculation, DOGE futures traders suffer $10M loss

Dogecoin surges 10% on X Payments speculation, DOGE futures traders suffer $10M loss

The Rising Role of Dogecoin (DOGE) on the X Platform

The past few days have witnessed a surge in the price of Dogecoin (DOGE) as speculations of its potential role on the newly-rebranded X platform have fueled a significant rally. As per CoinGecko data, DOGE has surged by as much as 10% to over 7.7 cents in the past 24 hours, with trading volumes reaching $2.3 billion. Notably, a major portion of these volumes came from UpBit, a renowned South Korean exchange known for speculative plays against the Korean won trading pair.

The recent surge in DOGE’s price has triggered significant volatility in the futures market, with traders losing nearly $10 million in their bets on and against DOGE’s price movements, according to Coinglass data. This volatility reflects the speculative nature of DOGE as an investment asset, which has gained immense popularity due to its association with memes and high-profile endorsements.

One such endorsement comes from Elon Musk, the owner of Tesla and Twitter. With the recent rebranding of Twitter to the everything app X, speculations are rife that Twitter could soon accept DOGE tokens for various purposes, including advertising payments. Tomer Nuni, the Chief Marketing Officer of Kryptomon, explained in a Telegram message that the speculation stems from Musk’s infatuation with the meme coin and the possibility of him extending its acceptance beyond Tesla.

This speculation is not unfounded, as Musk has previously hinted at the potential integration of DOGE as a payment option on Twitter. In a tweet back in April, Musk proposed DOGE as one of the payment options for Twitter Blue, the site’s subscription service with premium features. Furthermore, Tesla already accepts DOGE payments for merchandise purchases on the Tesla Store, indicating a potential repeat of the cryptocurrency’s integration in other Musk-owned businesses.

The growing acceptance of cryptocurrencies by major companies like Tesla reflects a broader trend of digital currencies transitioning from niche assets to mainstream forms of payment. Twitter, for instance, has been working on a payment system that allows transactions through its social media platform. While Elon Musk initially prioritized fiat currencies for this system, he has also expressed interest in adding cryptocurrencies at a later stage, as reported in a January article. This further bolsters the speculation surrounding DOGE’s potential role on Twitter’s X platform.

In conclusion, the recent rally in Dogecoin’s price can be attributed to the speculations surrounding its usage on the newly-rebranded X platform. Elon Musk’s endorsement and the growing acceptance of DOGE as a payment option in Tesla and potentially Twitter have sparked increased interest in the meme coin. As digital currencies continue to gain mainstream acceptance, it will be interesting to see how DOGE’s role unfolds on the X platform and if other cryptocurrencies follow suit.

This article was edited by Parikshit Mishra.