Elon Musk's Twitter takeover pushes dogecoin price up 30%

the official profile of Elon Musk on the social network Twitter.
Elon Musk on Twitter. Photo Illustration: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Dogecoin soared nearly 30% on Tuesday after Tesla boss Elon Musk agreed to buy Twitter for $44 billion.

The world's largest memecoin by market capitalisation is now priced at $0.16, according to CoinMarketCap statistics.

Dogecoin, which features a Shiba Inu dog as its symbol, is still down 78.4% from its all-time high of $0.73 on May 08, 2021.

After the Twitter board accepted Elon Musk's purchase price and conditions a green candlestick lit under the price of Dogecoin (DOGE-USD) and the cryptocurrency made a parabolic move.

On Monday, Twitter announced that it has reached a “definitive agreement to be bought by an entity entirely owned by Elon Musk for $54.20 per share in cash, in a transaction valued at about $44 billion".

Read more: Is bitcoin helpful to totalitarian regimes?

After Musk's acquisition, the social media giant founded by Jack Dorsey in 2006 will revert to its status as a “privately held corporation.”

Referring to the takeover by Mr Musk and the fact the company will no longer be publically listed, Mr Dorsey wrote on Twitter: “I love Twitter.

"Twitter is the closest thing we have to a global consciousness."

“The idea and service is all that matters to me, and I will do whatever it takes to protect both.

"Twitter as a company has always been my sole issue and my biggest regret.

"It has been owned by Wall Street and the ad model.

"Taking it back from Wall Street is the correct first step."

Mr Dorsey added that "Elon is the singular solution I trust, I trust his mission to extend the light of consciousness".

Musk has not been shy about his affection for Dogecoin and its possible use as a medium of exchange within the Twitter ecosystem.

Read more: 'Crypto lobby groups are dictating terms in Washington'

There has been speculation that advertisers could be able to pay for ads on Twitter using dogecoin.

This would emulate what we have seen happen in Musk's other company, the car-maker Tesla, where customers have the ability to purchase some products using dogecoin.

Products buyable with the meme-based cryptocurrency include the Cyberquad for Kids, the Giga Texas Belt Buckle and the Cyberwhistle.

The global crypto market cap is now $1.87T, seeing a 5.45% increase over the last day.

Read more: Crypto live prices

Bitcoin (BTC-USD) made gains of close to 6% on Tuesday, rising to $40,615 as of the time of writing.

Bitcoin's move above $40K has alleviated crypto enthusiasts after analysts forecasted a slump to $31K last week.

Second place cryptocurrency ethereum (ETH-USD) has broken through the $3k psychological level to push past $3,002 Tuesday morning UK-time.

Watch: Steve Hanke: 'Cryptocurrencies are fiat money on steroids'