The meme coin rally we’re seeing kick off 2024 is really reminiscent of some of the hype-driven speculation we saw during peak euphoria in 2021. Today, Dogecoin (DOGE-USD) is surging, up by more than 5% as well as more than 95% on a year-to-date (YTD) basis. This rally still has a long ways to go to replicate 2021. However, plenty of speculators appear to be putting leveraged long bets on this dog-inspired crypto, just in case DOGE does shoot higher.
Much of the recent optimism around Dogecoin appears to stem from rumors that Elon Musk could integrate the cryptocurrency as a key payment method for his social media platform X (formerly Twitter). This speculation comes after Musk reportedly commented that “the circle will be complete” to X user DogeDesigner, who depicted the CEO’s former payments platform X merging with the social media platform.
Of course, plenty of speculation around such an implementation is likely already baked into Dogecoin’s current value. However, today’s rise may indicate that investors are warming to the idea.
Let’s dive into what to make of these rumors.
Dogecoin Soars on X Payments Integration Rumors
Rumors are just exactly that — rumors. Speculation continues to be the core driver of Dogecoin’s valuation, so any suggestion that DOGE could be utilized in some grand way by the “Dogefather” himself — Elon Musk — is going to be enough to spark intraday rallies.
Elon Musk himself has stated that he owns Dogecoin, although he hasn’t specified how much or whether he has held onto the digital token. That said, Musk appears to have a vested interest in the DOGE community, continuing to provide Easter eggs for those willing to search for reasons to get bulled up on this Shiba Inu-inspired crypto.
Dogecoin is generally considered the grandfather of meme tokens, created as a joke more than a decade ago to represent the outrageous nature of how high cryptos can go based on little more than a meme. Elon Musk has taken this narrative to the next level, continuing to fan the flames.
We’ll have to see whether Dogecoin’s fiery surge can erupt into a full bore blaze, or if things will fizzle out over time. But one can be reasonably assured that Musk’s focus on “the most entertaining outcome” will provide plenty of volatility as we observe DOGE in the coming weeks and months.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
