InvestorCrypto.net - Dogecoin (DOGE) surged to its highest level since December 2021 on Thursday, driven by positive sentiment and speculation surrounding the potential use of this dog-themed meme coin on the social media platform X.
During European afternoon hours, DOGE was trading at 22 cents, marking a 17% increase over a 24-hour period. In contrast, the wider market remained relatively stable, with Bitcoin (BTC) holding steady around the $70,000 mark and the CoinDesk 20 index showing minimal movement.
The value of DOGE often responds to news related to payment developments within companies owned by Elon Musk, such as X or Tesla.
Recently, there has been increased speculation within the Dogecoin community about the potential integration of DOGE as a payment option on the X platform, which has likely contributed to heightened trading interest.
According to an X post made on Thursday by Dogecoin developer @mishaboar, "Dear #Dogecoin, with X's new payment division securing additional licenses in the U.S., there is considerable speculation about the implementation of crypto payments on the platform." The post went on to mention Elon Musk's previous comments about X potentially obtaining a money transmitter license in California, with similar progress expected for New York in the coming months.
Data from CoinGecko reveals that DOGE's trading volume surged to $7 billion in the past 24 hours, up from an average of $3 billion earlier in the week.
Despite lower overall crypto volumes and limited volatility, futures linked to DOGE experienced a rise in open interest, reaching close to $2 billion across various exchanges. This uptick suggests an increase in bets on price volatility for the cryptocurrency.
Speculation regarding DOGE's potential use on X has been circulating since Elon Musk acquired the company in 2021, given his public support for the token. Tesla, Musk's electric vehicle company, has been accepting DOGE payments for merchandise purchases in its store since last year.
In January, X announced its intention to launch a peer-to-peer payments service in the near future. However, there has been no official confirmation regarding whether DOGE will be included as a payment option on the platform.
Overall, the recent surge in DOGE's value and trading activity can be attributed to a combination of positive sentiment, speculative trading, and anticipation surrounding its potential integration into the X platform.
As the cryptocurrency market continues to evolve, it will be interesting to see how developments in payment technology and strategic partnerships shape the future of digital currencies like Dogecoin.
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