Dogecoin 'Natural Fit' For Musk's Plan To Revamp Twitter Verification, Says Analyst

Dogecoin DOGE/USD could fit in nicely with one of the first changes conceived by Tesla Inc TSLA CEO Elon Musk for his newest acquisition, according to a market data provider.

What Happened: Kaiko Research said in a note, seen by Benzinga, that DOGE could be a "natural fit for one of his first changes: getting rid of verification and offering Twitter Blue for $8 per month."

"Using DOGE for Twitter Blue payments would be far more feasible on a transaction count level," said Kaiko.

The note made a reference to Binance CEO Changpeng Zhao, who has invested $500 million in Musk's takeover of Twitter to be supportive of "anything that is to do with crypto or Web3."

Zhao said that Elon has mentioned "Dogecoin, charging for tweets, charging for comments, charging for the blue tick… I think all of those things are coming," according to a Decrypt report.

See Also: Best Cryptocurrencies on Robinhood Ranked

Why It Matters: Kaiko noted that Dogecoin would not be able to handle the "massive transaction volume" without higher fees or compromising on decentralization required for a decentralized social network requiring payment for each tweet.

Dogecoin maxes out at nearly 40 transactions per second (TPS), whereas Twitter would require nearly 600 TPS. 

On Tuesday, Dogecoin shot up after Musk tweeted a photo of a Shiba Inu dog dressed up in a Twitter outfit. 

The price of the coin tumbled on Thursday after it was reported that Twitter is suspending its plan to launch a cryptocurrency wallet.

Read Next: Elon Musk Should Keep Twitter, Dogecoin Apart For ‘Most Bullish Outcome’ For Meme Coin: Analyst