On April 3rd, 2023, Elon Musk, the CEO of Twitter, replaced the platform’s traditional blue bird logo with a Shiba Inu image, which is the icon for the cryptocurrency Dogecoin. This change led to a 30% spike in Dogecoin’s value, raising its market cap to over $13 billion, followed by a 9% dip on April 7th after Twitter dropped the Dogecoin logo. This event underscores Musk’s influence on cryptocurrency markets and the potential impact of social media platforms on digital assets. It also highlights the power of influential figures in shaping public opinion and market dynamics.
- High search volumes for “Buy Dogecoin” and “Buy Doge” indicated a surge in buying interest following an increase in Dogecoin’s social media coverage and Google searches.
- Dogecoin’s Wikipedia page saw a sharp increase in visits on April 4th.
- On April 4th Dogecoin’s Google search interest briefly surpassed that of Bitcoin’s.
- Public sentiment for Dogecoin was predominantly positive, with a noticeable increase in positive mentions. Nonetheless, it was still viewed as speculative meme-coin (A cryptocurrency associated with humorous or animated memes).
Musk’s Historical Patterns in Influencing Dogecoins’ Price:
This is not the first time that Musk’s actions have influenced Dogecoin’s value. His past tweets and public endorsements have often caused volatility in the cryptocurrency’s price.
- In May 2021, Musk admitted that Dogecoin is just “a hustle” on Saturday Night Live, which caused the cryptocurrency to drop by approx. 40% (CNN).
- In December 2021, Tesla announced it would accept Dogecoin for some merchandise, leading to a 20% increase in its value (Reuters).
- In January 2022, when Musk announced that Dogecoin payments were live, the cryptocurrency’s value jumped by as much as 15% (CNBC).
Spike in Media Coverage & Price Action:
From March 27th till the peak on April 4th Dogecoin’s Online articles increased by 770%, and Twitter posts spiked by 900%, correlating with the 30% rise in the cryptocurrency’s price.
Before the Twitter logo change, Dogecoin was trading at around $0.72 per coin. After the Twitter logo change, its value surged by approximately 30%, reaching a peak of $0.97 per coin, which pushed its market cap to over $13 billion.
Impact on Public Sentiment:
Before the event, Dogecoin was already seen as a meme cryptocurrency with a volatile price influenced by Elon Musk’s tweets and endorsements. After the event, the public perception likely remained similar, with some potentially viewing it as a risky investment due to its dependence on the actions of a single individual. However, the continued interest in Dogecoin and its ability to generate headlines may also attract new investors seeking high-risk, high-reward opportunities.
Public’s Interest in Dogecoin Reflected in Google Searches and Wikipedia Visits:
Google search data analysis shows that worldwide Dogecoin searches surged by 1660% in the last seven days, surpassing that of Bitcoin after Elon Musk changed Twitter’s bird logo to Dogecoin.
On April 4th, a sharp increase was witnessed on Dogecoin’s Wikipedia page further exemplifying the public’s interest in the cryptocurrency.
The public’s search actions show an uptick in buying interest:
The change caused buying interest to rise overnight as Google searches for “Buy Dogecoin” and “Buy Doge” soared by 400% and 130% respectively.
Our data revealed that the change in Twitter logo influenced the buying interest in Dogecoin, with notable increases in Google searches, media coverage, and market price, boosting its awareness. This event emphasizes the impact of public figures on market behaviour and dynamics in the crypto industry, highlighting the speculative nature of cryptocurrencies and the ever-changing digital asset landscape.
A Note on Methodology:
This study relies on the utilization of CARMA’s technology and third-party data, which are collected through automated means.