Dogecoin skyrockets after Elon Musk tweets that Tesla will accept the meme coin as payment for "some merch"

Everyone seems to have an opinion in regard to the extensive influence of the eccentric Tesla CEO, but it does not change the fact that Elon Musk's tweets often cause more or less violent surges or drops in the crypto market. In his latest tweet, Musk has now shared a long-awaited announcement which gave the popular meme token Dogecoin a considerable push. The tech icon said that Tesla will accept Dogecoin crypto payments for some of its products.

Musk specifically said that Tesla will only make "some merch" buyable with Dogecoin, which sounds like Tesla's electric vehicles may not be paid for with Dogecoin for the time being. He further emphasizes that the company will "see how it goes", indicating that this is not exactly a long-term commitment, but rather a trial run for Dogecoin payments. Nevertheless, this seemingly cautious expansion of Tesla's crypto payment methods appears to raise hopes that Dogecoin one day could indeed turn into a more widely accepted cryptocurrency.

Unsurprisingly, Dogecoin surged by more than 30% after Musk published the announcement on Twitter. One dogecoin was previously priced at around US$0.16, but over the course of just a few hours the price increased to US$0.22 per token. However, the meme coin has already lost most of these gains, which causes some doubts whether or not Tesla's Dogecoin payments can trigger a lasting resurgence of the previously weakening meme coin.

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