Billionaire tech entrepreneur Elon Musk has again shown his ardent support for the first meme cryptocurrency. In a recent podcast, the Tesla CEO says he is just supporting DOGE as a fan.
Musk supports Dogecoin because the crypto token is a meme coin and because of his love for the Shiba “dog.”
Musk added that although the token was originally designed to be a joke, it has real utility value.
Musk Explains DOGE Transaction Value
The billionaire remains convinced that the transactional value of the first meme cryptocurrency is higher than that of Bitcoin. Musk noted that Bitcoin might be the largest digital token by market capitalization, but its utility is limited.
Furthermore, the Tesla boss disclosed that the fact that the canine token is regarded as inflationary and volatile is a good value. To him, being volatile shows the prospect of the DOGE as it can become a viable means of exchange.
Dogecoin is not made to be hoarded like other cryptocurrencies. It is designed to be spent on something useful. As a result, Musk reiterated that users could use the DOGE token to pay for several utilities instead of hoarding.
Musk’s company, Tesla, has already begun accepting Dogecoin for some of its merch in January to show its support for the token. The electric car maker and SpaceX, one of Musk’s companies, have begun accepting payment in DOGE this year.
In June, The Boring Company, one of Musk’s companies, also announced it had added support for DOGE payment.
Furthermore, the fact that Musk is regarded as the “Dogefather” is a well-deserved testament to his love and support for the meme token.
DOGE Price Continues to Dwindle
The price of the popular meme cryptocurrency is currently in a downward trend as it has failed to rebound to its all-time high. Since the token attained its highest peak in May 2021, it has been a freefall, shedding more than 80% of its value.
Experts have forwarded various reasons as to why the famous meme token is on a steady decline. One such factor is the gradual decline in the hype of the coin. As the first meme digital currency to have debuted in the industry, the first few months saw the token’s price surge.
Another factor responsible for the decline in value of Dogecoin is its limited utility. Even though it is regarded as a utility, the token’s volatility is its undoing.
Due to the speculative nature of its price, critics see it as an unstable currency to use for transaction purposes. As a result, this makes it unattractive to investors.
Furthermore, the large number of traders looking to sell their DOGE holdings is seen as the biggest threat to its growth. Once the darling of whales, Dogecoin is being abandoned by currency hodlers who no longer find it attractive to accumulate.
In conclusion, many market variables are responsible for the woeful performance of the once-loved meme coin.