Elon Musk’s recent subtle change to his Twitter bio has once again fueled speculation about the future of Dogecoin on the platform. After changing Twitter’s branding to “X”, Musk’s profile location now displays an “X” and “D”, which many have interpreted as a reference to Twitter’s new branding and Dogecoin, a memecoin he has publicly endorsed in the past.
Real Vision CEO Raoul Pal shared the same conclusion, suggesting that Musk could use Dogecoin for global payments to creators on the platform, given his significant ownership and liking of the cryptocurrency. Pal proposed that Dogecoin could help Musk pass securities laws, thereby reducing execution risk compared to creating a platform-specific token.
Twitter’s sudden rebranding to “X” on July 24 surprised many, and the subsequent speculation about Dogecoin led to a slight price increase of up to 5% for memecoin, according to TradingView data. Dogecoin is trading at $0.07, representing a 9.5% increase over the last seven days.
eToro market analyst Josh Gilbert believes that while the rebranding could spark a short-term rally for Dogecoin, Musk’s actions could have a significant impact on the crypto market. Gilbert suggested that Musk’s plans to build a payments network using his platform could potentially position it as a competitor to established cryptocurrencies like Ethereum and Bitcoin.
Given Musk’s decision and market reaction, Gilbert advises investors not to get distracted by short-term events and instead focus on longer and broader trends in the crypto space.
As the speculation continues, it remains to be seen how Musk’s affinity for Dogecoin will play out and how it could shape the future landscape of memecoin and the wider cryptocurrency market. For now, the crypto community is eagerly awaiting further clues and announcements from this enigmatic tech entrepreneur.