The price of dogecoin surged nearly 30% Friday following support from billionaire Elon Musk and an announcement that crypto exchange Coinbase would list the token, a boost that has allowed the volatile asset to reclaim its spot as the fourth most valuable cryptocurrency in an otherwise dismal market still reeling from a $300 billion crash when Musk’s Tesla said it would no longer accept bitcoin as payment.
Dogecoin rose to a high of 56 cents a coin Friday morning, an increase of around 30% over the last 24 hours.
Its value is still a long way off the all time high of 73 cents it reached last week that was fueled by excitement over Musk’s appearance on SNL—but the surge contrasts with modest movements in the crypto market as it recovers from the Musk-induced $300 billion crash.
Musk, who said Tesla would no longer accept or sell Bitcoin due to its hefty environmental impact, said he “strongly believed” in crypto Thursday but not its massive fossil fuel use.
The billionaire later said he was working with Dogecoin’s developers to improve the system’s efficiency, describing it as “potentially promising.”
Dogecoin was also buoyed by news that the U.S.’ largest crypto exchange Coinbase would support the popular token.
Dogecoin, which was initially created as a joke mixing together cryptocurrency and the popular Shiba Inu doge meme, is volatile even in its notoriously volatile asset class. Peaks and crests tend to follow support from billionaires, celebrities—including Musk, Mark Cuban and Snoop Dog—and its dual status as a meme makes it even more unpredictable. When Reddit-fueled retail traders pumped into GameStop meme stocks, many saw Doge as an opportunity to do the same and take dogecoin to “the moon,” or $1 a coin. Its value surged to all time highs last week in anticipation of Musk’s SNL performance, plummeting 40% afterwards. Musk warned people to “invest with caution” ahead of the show, describing the asset as speculative but sparked yet another surge Tuesday when he hinted Tesla may accept doge in payment.
Bitcoin surged to a new all time high in March after Elon Musk revealed the cryptocurrency could now be used to purchase Tesla vehicles, a hotly anticipated move first teased when Tesla revealed it had invested $1.5 billion in the controversial asset and a signal of confidence that could bring bitcoin closer to mainstream use. After years of hesitation, major institutions are now embracing cryptocurrencies, if only to satisfy client demand. Tesla’s decision to stop accepting Bitcoin, for environmental reasons, knocked around $300 billion off the crypto market, though created appetite for environmentally friendly cryptos like Cardano’s ada, which temporarily soared to become the fourth most valuable cryptocurrency.