Once payments commence, Dogecoin will be the only cryptocurrency backed by Tesla.
On December 14, Dogecoin (DOGE) saw a sharp price rise when Tesla CEO Elon Musk revealed that the cryptocurrency would be accepted for select purchases.
DOGE-USD climbed over 25% according to data from Cointelegraph Markets Pro and TradingView, making it the only major cryptocurrency to gain on the day.
The meme-based altcoin had been lagging behind Bitcoin (BTC) and other large-cap tokens this week, but a turnaround delivered DOGE holders a 10% weekly gain.
Following Musk’s statement that the automaker would soon begin taking DOGE for items.
He tweeted, “Tesla will make some items buyable with Doge and see how it goes.”
“Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021”
As a result, Tesla takes the unique step of accepting just Dogecoin out of all the cryptocurrency options available. Elon Musk runs the danger of enraging Bitcoin (BTC) supporters, having previously permitted then disallowed Bitcoin purchases for Tesla automobiles due to purported environmental concerns.
Musk stated that Dogecoin is “better suited for transactions” than Bitcoin after being named Time Magazine’s “Person of the Year” this week.
“The total transaction flow that you do with Dogecoin, like transactions per day, has a much higher potential than Bitcoin (BTC),” he said, adding to a long list of public endorsements for DOGE.
Is it possible to bounce like a dead dog?
When it comes to a broader altcoin resurgence, analysts, on the other hand, are pessimistic.
With Bitcoin retaining its 40 percent market cap domination while failing to reverse its decline, there is little reason to believe that bagholders will see new profits this year.
“Beginning to get some June/July feelings on the markets, where we’re just chopping around, slowly consolidating towards a bottoming structure, while the masses are waiting for a lower level to be hit, which they’ll probably miss,” Cointelegraph contributor Michal van de Poppe predicted in a more upbeat commentary on Wednesday.
DOGE-USD was back below $0.20 at the time of writing after consolidating.