Can Elon Musk Help Dogecoin make a Comeback in February?

Elon Musk's recent tweet is expected to put Dogecoin at the center of the cryptocurrency market

Dogecoin has captivated the investors since the beginning of 2020 and its stronghold has made the honest followers not give up on the memecoin. DOGE experienced a whopping price surge in 2021 when its price went to as high as US$0.74. The price rally was triggered by familiar names like Elon Musk and Mark Cuban who over time have become big supporters of Dogecoin. Especially, the Tesla CEO continues to play a major role in contributing to Dogeocin's price surge. His recent Tweet is also expected to put DOGE again at the center of cryptocurrency speculation after months.

Over the past few days, Dogecoin is creating positive momentum in the cryptocurrency sphere. Along with it, Shiba Inu, DOGE's rival, is also gaining prominence. Dogecoin has gained 9% in the past 24-hours while Shiba Inu registered a 6.5% growth. Two factors are contributing to this sudden spike- one is the unexpected mention of Dogecoin by Elon Musk in his tweet and the other is forced liquidations that are introducing more volatility to the market. Dogecoin liquidation is making its position liquidated, forcing the price of DOGE higher, in a similar fashion as short-covering in the stock market. Currently, Shiba Inu and Dogecoin are in 3rd and 4th place in terms of forced liquidation, which is helping their price grow. On the other hand, we also have McDonald's Doge acceptance rumor and Elon Musk replying to it. These factors are heavily contributing to the ongoing positive trend.

What is the McDonald's and Elon Speculation?

McDonald's has already been caught up in rumors of introducing Dogecoin as a payment method in the chain store. However, there is no strong proof that the speculations are real and such a move is on its way. Still, DOGE followers have been skeptical about this and were expecting the upgrade. But its recent SuperBowl advertisement also didn't mention anything about Dogecoin. Elon Musk was quick to Tweet back with a 'sweat droplet' emoji.

This interaction between Elon Musk and McDonald's acted as a catalyst to trigger Dogecoin's price. In the next 24-hours, DOGE's value went up by 9% even when other top cryptocurrencies like Bitcoin and Ethereum are still under fire.

What will Make DOGE Reach US$1?

Launched in 2013, Dogecoin emerged as the first memecoin that's meant to be a decentralized payments network. DOGE kept a low profile for a very long time until the concept got attention from cryptocurrency investors in the 2020 price rally. AMC Entertainment and GameStop initiatives potentially drew Dogecoin's price up the hill with investors pouring more support. Famous names like Tesla CEO Elon Musk and Mark Cuban started constantly tweeting about Dogecoin, which made the memecoin price go even crazier.

So far, the maximum Dogecoin's price could reach is US$0.74 in May 2021. Since then it has fallen drastically and at the time of writing, it is being traded for US$0.14 with a market capitalization of US$19 billion. However, according to experts, DOGE reaching US$1 could be a matter of far future. They say that even Elon Musk can't make that happen now.

From Proof of Work to Proof of Stake

Recently, Ethereum co-founder, Vitalik Buterin, has confirmed that he is working with the Dogecoin foundation to help the memecoin migrate from its currency Proof of Work (PoW) working model to Proof of Stake (PoS) consensus mechanism. This shift will help Dogeocin create new coins in a more efficient and environment-friendly manner.

Elon Musk at the Heart of Dogecoin's Price Run

Celebrities and cryptocurrency enthusiasts have been pouring support to Dogecoin like crazy over the last couple of years. However, Elon Musk has a special place when it comes to memecoins, especially, DOGE. In July 2021, he confirmed publicly that he owns some cryptocurrency investments, and Bitcoin, Ethereum, and Dogecoin are on the list. There have been huge speculations on why Elon Musk favors Dogecoin a lot. Finally, he answered to settle down the sand via Twitter. He tweeted, "Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Dogecoin. He added that they aren't financial experts or Silicon Valley Technologists. That's why I decided to support Doge – it felt like the people's crypto.