After dropping 10% in 24 hours on Thursday, Elon Musk’s early morning tweet pushed the meme cryptocurrency, Dogecoin price back up, at least for the time being.
In a message to crypto YouTuber Matt Wallace, Tesla CEO Musk said that the Dogecoin might outperform Ether and Bitcoin after a protocol modification that would be implemented soon.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.— Elon Musk (@elonmusk) July 9, 2021
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
Musk said via tweet that both BTC and ETH are working on a layered transaction system, however the base layer transaction rate is slow, and transaction costs are high.
Elon Musk backs Dogecoin
When it comes to transactions, Elon Musk said that Dogecoin is distinct from Bitcoin and Ether.
In the same tweet, Musk went on to say that there is validity (in his opinion) to Doge boosting base layer transaction rate & decreasing transaction cost, with exchanges acting as the de facto secondary layer.
The self-proclaimed Dogecoin enthusiast and the founder of SpaceX, tweet, pushed the price of the cryptocurrency up to about 22 cents early in the morning. The previous day, the cryptocurrency had plummeted to 19 cents.
Dogecoin has lost nearly all of its value since reaching a high of nearly 74 cents back in May. Despite the market’s corrections, the meme coin continues to outperform the stock market.
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Along with Dogecoin, Bitcoin and Ether fell on Thursday morning as China’s central bank expressed concern about global financial dangers posed by some digital currencies. Senator Elizabeth Warren of the United States wrote to SEC Chairman Gary Gensler, requesting details on the agency’s authority and position on cryptocurrencies exchange regulation.
As of this writing, Dogecoin was trading for roughly $0.2185.