FX168 Financial News (North America) - # NFT and Cryptocurrency # After a video of Tesla CEO Elon Musk suggesting that the electric vehicle manufacturer may "at some point" use Dogecoin as Tesla's official payment method circulated on social media, the meme craze has resurfaced.
At the Berlin Superfactory, Musk made the above comment while answering a question from an audience who asked if he could use Dogecoin to purchase Tesla in the near future.
"Dogecoin is the cryptocurrency of the people"
"To some extent, I think we should achieve this," Musk replied. He also pointed out that fans can still use Dogecoin to purchase Tesla products, and then he told cryptocurrency enthusiasts in the crowd, "Dogecoin is going to the moon."
Due to the event being held in Germany, this video was released to American readers on Wednesday evening. After the video was released, the price of Dogecoin almost immediately skyrocketed by nearly 17%, from $0.165 to a high of $0.193, and has since fallen to the support level of $0.178.
Musk also explained the reasons why he initially supported Dogecoin, pointing out that he received a request from Tesla's super factory employees to use Dogecoin as the official payment method. He pointed out that SpaceX tourists are also demanding that he increase support for the popular memes.
"Dogecoin is the cryptocurrency of the people, so I will support it," Musk said after adding Dogecoin as a payment option for goods. Due to the significant support BAICION has received from the wealthy, Musk expressed his desire to support a cryptocurrency that the public prefers.
It has been proven that what is beneficial for Dogecoin is beneficial for all memes, as multiple tokens have rebounded with the strong support of Dogecoin.
Trader: Entering the next wave of meme coin craze
It is worth noting that dogwifhat outperformed other fields after raising $700000 through the Sphere wifhat campaign in its support community. The fundraising event was launched on March 10th with the goal of showcasing the token logo on the Las Vegas stage, highlighting the collaborative nature of the meme community.
In the PoliFi field centered around American politicians, tokens such as BODEN (misspelled Joe Biden) and TREMP (misspelled Donald Trump) have increased.
The investment manager stated that due to the low cost of platforms such as Solana, the meme craze may continue for a longer period of time.
The cryptocurrency frenzy within the cryptocurrency industry continues to heat up, with the industry rising an average of 12% in the past 24 hours, outperforming the broader cryptocurrency market.
The famous meme tokens of Ethereum and Solana ecosystems began to gain momentum at the end of February as a way to bet on the growth of memory blockchain. Amidst fluctuations, memes such as FLOKI and SHIB rose 800% within 7 days.
"Similar to the emoticon pack spread crazily on the Internet"
A few hours before Musk's remarks led to a surge in memes, American multinational investment firm Franklin Templeton released an investor report titled "The Value between Memes and Native Networks." The report stated that although they have "no intrinsic value or utility," these tokens may bring rapid returns.
According to the report, the price performance of meme coins is "similar to the expression packs that are wildly circulated on the Internet". Because of their "uniqueness", they were welcomed last year. They also do not require the same technical knowledge as other cryptocurrencies, have lower costs compared to other cryptocurrencies, and for those who want to bravely face fluctuations, they have the potential to quickly profit.
The analysis also indicates that memes have a strong relationship with their native network, and takes into account the rise of BONK on Solana, rising from $0.00000015 at the end of 2022 to the current $0.000033, an increase of 21900%.
"Memetics are benefiting from profit redistribution"
In addition to Musk's support and Franklin Templeton's positive report, cryptocurrency market intelligence firm Santiment stated that as BAICION reaches a historic high and long-term holders rotate, memes are benefiting from profit redistribution.
Although many cryptocurrency holders are pleased with the return of meme frenzy, Kaiko's research analyst Dessislava Aubert warns that the surge in meme prices often precedes the decline in the cryptocurrency market.
"From a historical perspective, the surge in memes often foreshadows the top of the market," Aubert told Business Times. "However, as new capital enters the cryptocurrency market, it is difficult to predict whether this situation will continue. We also observe that some of these tokens are increasingly driven by special factors and have less correlation with BAICION."
