1. Acceptance of Tesla products (January 2022): Tesla started accepting Dogecoin for some products, which immediately led to over 20% increase in Dogecoin. This is the first time Tesla has directly incorporated DOGE into its payment options for certain products, sparking widespread interest and price hikes.
2. Elon Musk’s acquisition of Twitter (October 2022): Although not a direct Tesla product launch, Musk’s acquisition of Twitter may lead to Dogecoin being integrated into Tesla’s payments and Twitter monetization. This led to speculation. DOGE saw a significant increase of around 40% in the days following the announcement as Mr. Musk continued to publicly support Dogecoin.
3. Tesla Investor Day (March 2023): Just before Tesla Investor Day in early 2023, Dogecoin rose again, reversing the market cap of other cryptocurrencies such as Polygon and Binance USD.
4. Re-introducing Dogecoin payments (August 2024): After scoring a legal victory in a Dogecoin-related case, Elon Musk reaffirmed that Tesla will reinstate Dogecoin payments for goods.
Among other things, these key events highlight the strong correlation between Tesla’s announcement and Dogecoin’s price movements, which are heavily influenced by Musk’s personal support for the cryptocurrency.
Dogecoin network usage spikes 120% after Tesla event
Dogecoin’s performance in 2024 was quite subdued compared to the likes of PEPE, WIF, and BONK, which hit all-time highs. This has led to major concerns that newer and trendier Solana memes are encroaching on the market share of traditional blue-chip meme coins such as DOGE and Shiba Inu (SHIB).
However, on-chain data trends indicate that Dogecoin’s user engagement has remained relatively stable and continues to lead in several on-chain metrics.
DOGE currently has 20 times more daily active users than Shiba Inu and 10 times more than Base’s top meme coin, DEGEN. This confirms that Dogecoin still holds the largest share of investor mindshare within the memecoin sector.
Tesla’s latest autonomous EV and personal assistant robot could present new use cases for Dogecoin. Once these autonomous products can be economically traded, Dogecoin could emerge as the primary payment method for fast and secure transactions.
