The cryptocurrency market has shown a slight recovery midweek. This recovery is being led by Dogecoin. The meme-inspired cryptocurrency gained ground after Tesla CEO Elon Musk compared it to Bitcoin.
“Bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions, Musk told Time Magazine.
The Tesla CEO believes the transactional volume of bitcoin is low, and the cost per transaction is high. He said bitcoin is more suitable as a store of value, which is why its investors want to hold onto it and not sell it or use it for transactions. “Dogecoin, on the other hand, is a currency that encourages people to spend, rather than sort of hoard as a store of value.”
To keep the conversation going and the market rolling, Musk tweeted that Tesla will make some merch buyable with DOGE and see how it goes. Shortly afterward, Dogecoin surged 33% to more than $0.21 before falling to its 0.17 mark. The price of Dogecoin, at the time of writing this article, is $0.1794 with a 24-hour trading volume of USD 5,008,941,675. The current CoinMarketCap ranking is #10, with a live market cap of USD 23,719,045,801.
Bitcoin gained 1.25% and now stands at USD 48,201.3. Ethereum recovered to $3,855.02, up by 0.27% in the last 24 hours. Other tokens have also warmed up the crypto market. This includes Avalanche which gained 15%; Solana 7%; and LUNA 5%.
However, analysts say the market remains bullish.