Dogecoin soared recently by 29% amid renewed reports that the Elon Musk-led electric vehicle manufacturer Tesla incorporated DOGE as a payment instrument.
Over the weekends, crypto market participants observed that Tesla’s payment section had been revised to feature Dogecoin.
Indeed, DOGE is a tenable asset for some products listed on the Tesla. However, it does not include eclectic cars. In particular, the company permits the use of DOGE exclusively for purchasing merchandise through its online store, Tesla Shop.
⚡️ BREAKING: #Tesla updated their payment methods to include $DOGE. pic.twitter.com/yTYhe1032V
— Crypto Rand (@crypto_rand) May 4, 2024
Dogecoin Takes Impact
After this update resurfaced in the crypto community, Dogecoin’s market value dramatically increased. In particular, Dogecoin, which traded at a low of $0.1314 on Friday, soared by 28.69% within 24 hours, clocking $0.1691.
Meanwhile, there is skepticism surrounding the supposed “news” around Tesla adding Dogecoin as a payment method. They pointed out that Elon Musk’s firm has been known to support Dogecoin payments for years already.
Dogecoin Payment Supported since 2022
Notably, on December 14, 2021, Elon Musk revealed that Tesla would experiment with accepting Dogecoin in exchange for merchandise. A month later, Musk confirmed incorporating Dogecoin as a payment method for Tesla Shop.
The move came after Tesla discontinued Bitcoin payment for its goods, citing environmental concerns. Shortly before the Dogecoin endorsement, Musk, in an interview, praised the meme coin over Bitcoin, saying it is better suited for transactions.
Specifically, Musk highlighted that the Dogecoin network permits higher transaction counts and charges lower fees for transfers compared to Bitcoin.
A few months after Tesla Shop welcomed Dogecoin payment, SpaceX, another company led by Elon Musk, began accepting the meme coin. Essentially, Dogecoin has long been a supported payment instrument for goods Elon Musk’s companies produce, save for electric cars.
When Support for Electric Cars
Meanwhile, in March 2024, while visiting the Giga Berlin factory, attendees questioned Musk about the possibility of Tesla accepting Dogecoin for electric vehicle purchases. Musk replied that they would consider incorporating Dogecoin as a payment method at some point down the line.
Elon Musk at Giga Berlin today.
“When will I be able to buy a Tesla with dogecoin?”
“At some point I think we should enable that.” 😂🔥 pic.twitter.com/Suk7bifuHC— Sir Doge of the Coin ⚔️ (@dogeofficialceo) March 14, 2024
Why Elon Musk Continues to Support Dogecoin
Meanwhile, Musk revealed a compelling rationale for his ongoing endorsement of Dogecoin. He disclosed that he had received numerous appeals from his employees to back DOGE.
While observing Bitcoin as overly the crypto asset of the rich, the repeated mention of Dogecoin painted it as the cryptocurrency of the people. As a result, he opted to endorse it for his business while partially parting ways with Bitcoin.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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