As the “Crypto King” Elon Musk has managed to make himself one of the most important voices in the crypto market. He usually doesn’t have to say much in his tweets except the name of a cryptocurrency for its prices to start rising. And nowhere is this more apparent than his avid support for the crypto Dogecoin.
While being a cryptocurrency that started out as a meme, Dogecoin has been going fairly strong. Despite the many dips it has seen over the years, it is still one of the top ten cryptocurrencies by market cap. And with Elon Musk’s continued endorsements, it has managed to stay relevant.
Elon Musk showed off his influencer chops again by sending Dogecoin prices rising with a single tweet. The Doge father simply retweeted an update about the Dogecoin network updating. He simply wrote Important, and it left the entire market in a frenzy.
His reply eventually got more likes than the original tweet that he was mentioning. More importantly, as soon as Musk’s tweet went viral, Dogecoin started to see its prices rise.
As for the original tweet, it was focusing on Dogecoin nodes and how not enough people have updated their nodes. As of the tweet’s posting, only 205 computers were using the most recent and updated nodes. But when more people start using these updated nodes, it will help keep the network safe.
More importantly, with the help of the new nodes, Dogecoin users will also be able to avoid paying more in transaction fees. Once enough people are on the new nodes, Dogecoin will be able to release a new update. This update will allow investors to pay a fraction of what they otherwise would in transaction fees.
Just 24 hours after the Doge father’s tweet went live, Dogecoin was able to rise by 1.52%. This growth left the price at $0.27, making it a substantial growth for the token. Within a few days of the original tweet, the prices for Dogecoin rose again to $0.29. With prices rising this fast, people have dubbed his influence over the market “The Musk Effect.”
Of course, The Musk Effect has helped various other cryptocurrencies over the years. Just a simple mention that he might be accepting payments from Bitcoin lead to a surprising rise in prices. Once he made one particular crypto rise by more than 29%.
Sometimes his tweets don’t even have to be about a coin or token. Once he simply tweeted that he would name his shiba inu Floki, and it made an alt coin called Shiba Inu rise by 10%.