Dogecoin Price Prediction: Elon Musk Gives DOGE Major Price Boost With Tesla Reveal!

History repeats itself as an Elon Musk tweet restarted the Dogecoin hype on Tuesday. Musk said Tesla would accept Doge as payment for some of its merchandise, which boosted the meme coin's price for over 23 percent. Sure enough, many investors took advantage of this opportunity.

When Dogecoin was first released in 2013, its trade value was no more than $0.00026. Dogecoin was originally developed as a joke by creators Billy Markus and Jackson Palmer, who were inspired by the original doge meme. However, in the months that followed, the meme coin eventually took real value in the market, boasting one of the highest growth potentials in the cryptocurrency industry.

Elon Musk Tweet Sparks Dogecoin Price Boost

On Tuesday, fans were shocked to see Musk's tweet saying "Tesla will make some merch buyable with Doge & see how it goes." The company CEO did not elaborate on the announcement, but it implies that consumers could buy the Tesla branded solar panels, solar roof tiles, battery energy storage and electric vehicles using Doge.

The tweet in itself is a huge boost. Tesla is arguably the biggest vehicle manufacturer in the electric car industry, which means they have a lot of fans who could benefit from this new payment method.

However, it should be emphasized that Musk's tweet also influenced other big industries to boost Dogecoin. Some of their tweets are listed below.

Coinbase dropped a friendly reminder that investors can trade Dogecoin on their website.

Fintwit, a Twitter page that regularly posts news about cryptocurrencies, commented a meme of Elon Musk.

BabyDoge, a Dogecoin spinoff cryptocurrency, tweeted their support.

The crypto exchange Huobi also posted a holiday discount for Doge.

Even Bloomberg's Editor in Chief had something to write about this development.

Dogecoin Price Prediction: A Second Trip to the Moon

However, amidst the hype, not all fans are happy about the development. Crypto Rand posted a meme about how the Dogecoin hype heavily relies on Musk's tweets.

One fan joked that Musk hads the power to send all cryptocurrencies to a dip.

Another commenter pointed out that this tweet is manipulating the market and that boosts like this are often a huge risk for small investors.

The sentiment is linked up to events that happened earlier this year, when Dogecoin crashed from its all-time high of $0.74 to a devastating $0.22. This dip created a lot of frustration among investors, who lost thousands overnight.

At the time of writing, Dogecoin traded at $0.18 with a 16.1 percent growth in the last 24 hours, per CoinDesk.

Dogecoin is a cryptocurrency with amazing growth potential, but it is also one of the most dangerous markets to invest in. Its markets are erratic, and its values are reliant to fan hype. It is recommended that traders only invest money they are willing to lose on this ongoing Dogecoin market boost.