Here is a reason to follow Elon Musk on Twitter: you might be one of the first people to jump on a new market trend. This one is for meme lovers.

It is no secret that one small event can shake the market to the core and turn winners to losers, and the other way around. This is exactly why many traders rely on news trading — important events can make the market more volatile and, therefore, create more opportunities of quick gains for traders. While a tweet can hardly be qualified as “important news”, when it’s a tweet from Elon Musk, you should be paying attention.

Dogecoin has been called a “joke coin” by its creators — it was never intended to be a true competitor to Bitcoin or other cryptocurrencies. Since the meme-based cryptocurrency’s creation in 2013, the price of Dogecoin has actually been plateauing for years, with brief price spikes at various intervals along with the broader cryptocurrency market.

However, all that changed in late January, when retailers, frustrated by restrictions for GameStop trading, turned to cryptocurrencies. And Dogecoin is now leading the way with the attention of billionaires, rock stars, YouTubers and millions of others looking to get rich quick.

The more than 600% increase in Dogecoin’s price since January 28th is due to the attention sparked by celebrities and social media stars who called on fans to “pump” the price of this crypto. But Elon Musk, the billionaire chief executive of Tesla and most famous Dogecoin fan, is only there for the memes.

Kiss frontman and rock star Gene Simmons, who has previously praised Bitcoin and other cryptocurrencies, caused a stir last week with his Dogecoin meme.

“God of Dogecoin!” – Simmons wrote on Twitter along with a photo of himself. Fans quickly posted a photo of Shiba Inu’s Dogecoin on Simmons’ face. Simmons tweeted that as well.

Then rapper Snoop Dogg tweeted a similar photo with the words “Snoop Doge”. Finally, Musk put them all together in a meme that he tweeted a couple days ago.

Elon Musk’s tweet joking about Dogecoin

Dogecoin’s success has boosted its market value to more than $10 billion, making it the tenth-ranked digital currency according to CoinMarketCap. At its peak on Monday, Dogecoin reached nearly $16.9 billion in trading volume in the last 24 hours.

The Dogecoin hype over the past few weeks has also been driven in part by the enthusiasm of a Reddit group called SatoshiStreetBets. Like the WallStreetBets group that participated in the recent GameStop rally, SatoshiStreetBets aims to drive up the price of cryptocurrencies.

While the coin itself raises a lot of questions and skepticism, many individual investors continue pumping its price up. Whether they genuinly belive in it or just follow the stream, is unknown.

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