Dogecoin Price Goes Up as Elon Musk Says Tesla Merch Buyable With Token

Dogecoin, the cryptocurrency token, has jumped in price after Elon Musk confirmed that Tesla merchandise could be purchased with it.

In a tweet at around 1:18 a.m. ET on Friday morning, Tesla boss Musk tweeted simply: "Tesla merch buyable with Dogecoin."

Around two-and-a-half hours later the dog-themed meme coin was up 14.8 percent at 3:45 a.m. ET over the previous 24 hours, bringing its price to $0.19, according to cryptocurrency price tracking site CoinMarketCap.

In addition, Dogecoin's market cap—the total value of all tokens in circulation—had risen to $25.9 billion.

Meanwhile Musk's tweet had proved popular, gaining more than 130,000 likes and 23,000 retweets within a couple of hours. Musk had previously teased that Tesla would accept Dogecoin as payment around a month ago.

Experts have previously warned Newsweek about the risks and dangers associated with cryptocurrency including notoriously volatile prices.

Newsweek could not verify if Musk's tweet is behind the price rise. The Tesla and SpaceX boss is seen as influential in cryptocurrency circles and his activities and tweets have coincided with price rises and falls in the past.

Dogecoin's price had also experienced a rise earlier this week before Musk had said anything about the Tesla merchandise on Twitter.

The token has been on a downhill trend over the past few months, sinking from an October high of more than $0.30 to less than $0.15 last week.

Tesla's acceptance of Dogecoin for merchandise adds to the small but increasing number of examples where cryptocurrencies can be used in the real world. The electric car firm had previously allowed its customers to buy cars with bitcoin, but had stopped due to environmental concerns associated with cryptocurrency mining—the energy-intensive process of creating new tokens.

Most high-street brands and shops still shy away from accepting cryptocurrencies directly as payment, even with higher-profile tokens like bitcoin.

Still, cryptocurrency enthusiasts are pushing for greater acceptance. A petition to get online shopping behemoth Amazon to accept dogecoin as payment has been ongoing for about four years and as of Friday had received just over 240,000 signatures.

Earlier this January, Adam Aron, AMC Theatres CEO, said on Twitter that the company is "well on track" to accept Dogecoin as well as the similar dog-themed Shiba Inu cryptocurrency as a method of payment on the AMC website and app. He said the most likely timing of this would be in March.

Dogecoin reached its all-time high on May 8 in 2021 when it briefly was priced at $0.73 according to cryptocurrency price tracking site CoinMarketCap, after which it fell sharply.

Elon Musk
Tesla CEO Elon Musk at the construction of a Tesla factory near Berlin, Germany, in September 2020. Musk has announced that Tesla merchandise is buyable with Dogecoin. Maja Hitij/Getty