Tesla's Dogecoin Adoption Sends Crypto Market Into Frenzy, Meme Coin Surges By Over 21%

Elon Musk's Tesla Inc. TSLA has officially incorporated Dogecoin DOGE/USD as a payment option, albeit with a specific limitation.

What Happened: Tesla updated its payments page to include Dogecoin for merchandise purchases on its online platform.

The update also hints at the possibility of Dogecoin being accepted for specific products in the future.

Tesla's association with Dogecoin is not new. In January 2022, the company first accepted the meme cryptocurrency for merchandise like the Tesla Cyberwhistle and the "Giga Texas" belt buckle. Later, SpaceX, another Musk-led company, followed suit.

In March 2024, Musk suggested that Tesla might accept Dogecoin payments for its electric cars while visiting the Giga factory in Berlin. This led to a 10% surge in DOGE's price, although the spike was short-lived.

Also Read: Forget Dogecoin And Shiba Inu — This Meme Coin Has Surged Nearly 70% In Just 24 Hours

The recent announcement of Tesla's expanded use of Dogecoin has caused the meme coin's value to skyrocket by over 21% in the past 24 hours.

Why It Matters: Musk's influence on the crypto market, particularly Dogecoin, has been significant. In March 2024, Dogecoin saw a remarkable $800 million increase in open interest within three days, following Musk's endeavors.

However, Musk's relationship with Dogecoin has had its share of controversies.

In June 2023, Musk denied owning Dogecoin in response to a lawsuit accusing him of price manipulation. The following month, Musk was accused of financing an "unlawful harassment campaign" against Dogecoin investors.

Despite these controversies, Tesla's recent move to accept Dogecoin for merchandise purchases signals a continued interest in the cryptocurrency and could potentially influence its future market performance.

Now Read: Dogecoin Set to Surge Over 200%, Says Crypto Analyst: 'It's Going To Do Something Insane This Cycle

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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