Shiba Inu-based cryptocurrency dogecoin reclaimed its spot as the fourth most valuable cryptocurrency Tuesday after Tesla CEO Elon Musk asked Twitter followers if the company should accept the token as payment for its vehicles, a move that could legitimize the highly volatile asset and restore some of the value it had lost after Musk called it a “hustle” on SNL Saturday.
In the space of an hour, the billionaire’s tweet garnered over a million responses, with nearly 80% of people supporting the idea in a poll.
The price of dogecoin rose nearly 14% to around 53 cents a coin, down from an all time high of 73 cents this weekend in advance of Musk’s SNL appearance.
The rally took dogecoin’s market cap over $68 billion, surpassing XRP as the fourth most valuable crypto.
Musk’s highly anticipated appearance on Saturday Night Live whipped up doge-related interest online, prompting a weeklong rally that took it to new all time highs of over 70 cents a coin. The billionaire is one of the most high-profile proponents of it and other cryptocurrencies, though he has urged people to invest with caution as it is still a speculative asset class. Its value plummeted 40% following Musk’s performance. The token is volatile and highly responsive to Musk’s actions, with some of the biggest spikes for dogecoin coming after the token was mentioned by Elon Musk on Twitter, often with memes.
Bitcoin surged to a new all time high in March after Elon Musk revealed the cryptocurrency could now be used to purchase Tesla vehicles, a hotly anticipated move first teased when Tesla revealed it had invested $1.5 billion in the controversial asset and a signal of confidence that could bring bitcoin closer to mainstream use. After years of hesitation, major institutions are now embracing cryptocurrencies, if only to satisfy client demand.