Dogecoin (DOGE) Up By 11% As X Launches Dedicated Payment Account

According to data from Coingecko, Dogecoin (DOGE) has soared by 10.5% in the last 24 hours, drawing much attention from market analysts and investors alike. Prior to this gain, the memecoin had shown little price movement, hovering around the $0.08 price region for most of the past week. 

Dogecoin ranks as one of the top players in the crypto ecosystem, with a staggering market cap of $12.38 billion. The meme coin is particularly popular for its endorsements by famous figures such as Gene Simmons, Snoop Dogg, Mark Cuban and the world’s richest man Elon Musk.

Interestingly, the current rise in DOGE’s price appears to be related to recent developments on Elon Musk’s social media platform X. On January 20, X launched a dedicated account for its X Payments initiative, a peer-to-peer payment service designed to enhance “user utility” and introduce “new opportunities for commerce”.

The X Payments project was initially announced on January 9 as part of Elon Musk’s grand plan to position X as the “everything app”, providing a single interface which caters to user needs in terms of social media, advertising, content and video promotion, among others.

DOGE’s reaction to the creation of the X Payments account is driven mainly by the potential role many investors believe the token may play in this payment system upon launch. Such expectations are mostly based on Elon Musk’s vocal and consistent support of the meme coin since as far back as 2019. Tesla, one of Elon Musk’s more valuable companies, already accepts payment in Dogecoin, and there are speculations the crypto asset could adopt a similar role in the X Payments project. 

The potential of such incorporation could spell massive gains for DOGE in terms of adoption. According to X, its payment initiative is now registered in 32 states of the United States, securing a money transmitter license in 10. 

However, it is worth stating that there are no statements or hints from credible officials that X Payments will indeed adopt DOGE as a settlement option following its expected launch in mid-2024. Alongside the memecoin, other cryptocurrencies being propped to act as payment options in X’s e-commerce feature include XRP, and Stellar (XLM), among others. 

At the time of writing, DOGE trades at $0.0861, reflecting a 7.4% gain in the last seven and fourteen days. On the monthly chart, DOGE is down by 7.5% and has barely shown any growth in the last year, with a Year-To-Date (YTD) gain of 0.6%. As earlier stated, Dogecoin boasts of a market cap of  $12.38 billion, making it the 10th largest cryptocurrency. In addition, the memecoin’s daily trading volume is valued at around $1.17 billion.