Dogecoin value jumps 20% on Elon Musk’s announcement of accepting it as payment for Tesla merchs

Meme-based cryptocurrency dogecoin saw a huge 20 percent increase in value after Tesla CEO Elon Musk stated that it would be accepted as payment to purchase some company merchandise.

At the time this report was written, one unit of dogecoin was worth $0.19. This value has risen by almost $0.032, or 20.45%, compared to the previous day.

Analysts in crypto quickly linked the rise in dogecoin’s value to Musk’s tweet that stated: “Tesla is going to make some merch with Doge and see how it goes (sic).”

Musk tweeted that the electric carmaker would accept dogecoin for merchandise payment on a trial basis.

Musk’s comments on social media have been known to influence the value of dogecoin. According to Coinbase data, Musk’s tweets about cryptocurrency, including one in which he called it “people’s crypto”, helped the meme coin rise 5,859 percent in the past year.

Musk didn’t specify which merchandise could be purchased with dogecoin, although it starts at $50 and can go as high as $1900.

Tesla also sells apparel, Giga Texas belt buckles, and miniature models of its vehicles. There are also limited-edition, quirky items like the ‘Cyberwhistle, which is modeled on its long-awaited Cybertruck. The company recently introduced a quad bike called ‘Cyberquad” for children, which is also modeled after its Cybertruck.

Musk is a strong cryptocurrency supporter and has often supported dogecoin. He said that it was better for transactions in a recent interview with Time magazine.

He stated that Bitcoin is not a substitute for transactional currencies.

Musk had polled Twitter users in May asking if they would like Tesla to accept dogecoin. During his May guest-host spot as a host on “Saturday Night Live”, he called dogecoin a “hustle” .

Musk, with over 66,000,000 followers on Twitter, was highly involved in this year’s retail trade frenzy. He tweeted about cryptocurrencies, helping to send their prices skyrocketing, and he also has a lot of other tweets.

Two months after accepting bitcoin as payment for car purchases, the EV manufacturer stopped accepting the digital currency.