"Yeah, so this is good news," tweeted Dogecoin co-founder Billy Markus after Twitter CEO Parag Agrawal announced that Elon Musk would join the social media firm's board of directors.
DOGE also reacted positively to the news, jumping more than 7% in the past 24 hours, according to CoinMarketCap.
The leading meme coin is now trading at just over $0.16 after briefly peaking at roughly $0.17 last night. Dogecoin’s market cap is just over $21 billion.
The week-long rally has been even more impressive. On March 30, DOGE was trading at $0.14, which, from trough to peak, marks roughly a 21% increase.
Despite the bullish surge, DOGE is still down from its all-time high of $0.73 in May 2021. At that time, the cryptocurrency joined a handful of other meme stocks like GameStop (GME) and AMC Theaters (AMC) in one of the more bizarre bull-run stories in financial history.
The most likely reason behind Dogecoin's latest rise is the project's close ties with Elon Musk and his strong influence over the price of DOGE—an influence which he often exercises on Twitter.
Musk, Dogecoin, and Twitter
On Monday, Musk purchased a 9.2% stake in the social media firm, according to an SEC filing. The filing indicated that the Telsa chief had purchased 73,486,938 TWTR shares at $39.31, totaling more than $2.8 billion.
Twitter's CEO announced a day later that Musk had joined the board of directors. "He's both a passionate believer and intense critic of the service, which is exactly what we need on Twitter," said Parag Agrawal.
By joining the board, Musk also agrees that he will not purchase more than 14.9% and take over majority control of the company.
"Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company's common stock outstanding at such time," according to a filing.
As Twitter enthusiasts wait attentively for any incoming changes to the platform, Dogecoin holders are undoubtedly enjoying the news this week.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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