Dogecoin (DOGE) will be the only crypto that Tesla will support once payments start. On December 14, DOGE experienced a sudden spike after Tesla CEO Elon Musk said that his company would start accepting the crypto for some purchases.
Data acquired from TradingView showed DOGE/USD gaining at least 25% to become the only top crypto to deliver gains on Tuesday. This meme-based altcoin had followed in the trend set by Bitcoin (BTC) and other large-cap tokens downward for the start of the new week. However, the abrupt turnaround has given the DOGE holders 10% weekly gains.
This move came after Musk said that the electric automaker would soon start accepting DOGE for merchandise. He tweeted:
“Tesla will make some merchandise buyable with Doge & see how it goes.”
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
In doing that, Tesla adopts the unexpected and strange yet controversial position of accepting just Dogecoin out of all the possible crypto options available. Elon Musk risks rattling the Bitcoin proponents, mostly, after previously allowing and then stopping Bitcoin purchases for Tesla vehicles over claims of environmental concerns.
Earlier this week, Musk was declared Time Magazine’s “Person of the Year”. He then said that Dogecoin is “better suited for transactions” than Bitcoin.
“The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin.”
His comments come to add to a longstanding record of public praise for DOGE.
Is This A Dead-Dog Bounce?
But, zooming away shows that the mood among the analysts is quite bleak with regards to the wider altcoin rejuvenation and resurgence. With Bitcoin still having 40% market cap dominance while it fails to reverse its downtrend, there is little hope currently in the matters of fresh gains for the hodlers this year.
One analyst predicted in a more optimistic commentary:
“Starting to get some June/July feelings on the markets in which we’re just chopping around, slowly consolidating towards a bottoming structure, while the mass is waiting for a lower level to be hit, which they’ll probably miss.”
After consolidation, DOGE is trading around $0.21 at the time of publication.