Dogecoin DOGE/USD saw its value increase by approximately 4%, hitting $0.090 after reports said that luxury sports car maker Ferrari might begin accepting the cryptocurrency as a form of payment.
What Happened: According to data analytics provided by LunarCrush Pro, the social buzz around Dogecoin has surged, with its social dominance score rising by 125% within a week.
The 24-hour trading volume for DOGE shot up 143.1% to $804.86 million, according to data from CoinMarketCap.
Ferrari, known for its sports cars, started entertaining cryptocurrency as a payment option earlier in October 2023 in the U.S., with plans to expand this payment facility to European markets as well, as confirmed by the company’s marketing and commercial chief in an interview with Reuters.
“Some are young investors who have built their fortunes around cryptocurrencies,” Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, told Reuters. “Some others are more traditional investors, who want to diversify their portfolios.”
Ferrari officially partnered with BitPay to facilitate cryptocurrency transactions as their payment processor.
When approached for further details, Ferrari and BitPay did not immediately provide comments to Benzinga.
Trading activity for Dogecoin has also shown engagement, with spot trading volumes reaching $500 million over the past day, based on data from CoinMarketCap.
Further support for the cryptocurrency’s optimistic performance comes from data shared by IntoTheBlock, which indicates that 64% of Dogecoin investors are currently seeing profits due to the coin’s price increase. Additionally, Coinglass reports a 6.27% rise in Dogecoin open interest, bringing the total to $601.73 million in the last 24 hours.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Cryptocurrency analyst Daan Crypto Trades commented on how X payments have been on the rise and has been investing all earnings from this source into Dogecoin. He pondered over the outcome of this “experiment” by the end of the cycle and whether Dogecoin will ever hit the anticipated $1 mark.
Last week, the Dogecoin community celebrated the 14th birthday of the Shiba Inu dog Kabosu, who inspired the original Dogecoin meme. Dogecoin was created as a lighthearted take on cryptocurrencies by software developers Billy Markus and Jackson Palmer.
The increase in Dogecoin's price also correlates with discussions around its adoption for payments on X. Speculations have been partly fueled by Elon Musk’s previous comments on Twitter regarding the suitability of Dogecoin for payments on the Twitter Blue subscription service. Musk’s company Tesla has already made it possible to buy company merchandise with Dogecoin via the Tesla Store.
Price Action: At the time of writing, DOGE was trading at $0.088, up 3.99% over the past 24 hours, as reported by Benzinga Pro.
Photo via Shutterstock
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