Elon Musk, who is currently facing a $258 billion lawsuit for an alleged Dogecoin pyramid scheme, recently announced his support for the meme coin. In a Tweet on 19 June, the world’s richest person mentioned that he will keep supporting DOGE.
Elon Musk’s interest in innovative technologies like crypto and blockchain is nothing new. He is the CEO of Tesla, a company that holds more than $1 billion worth of Bitcoin. On several occasions in the past, Musk highlighted the growing potential of Dogecoin as a currency.
“I will keep supporting Dogecoin,” Musk Tweeted on Sunday. The CEO of Tesla is currently holding Bitcoin, Ethereum and Dogecoin. Even during the latest market correction, Musk announced that he is not planning to sell his crypto assets.
After the recent support from the CEO of SpaceX, DOGE climbed by approximately 10%. With a market cap of almost $8 billion, Dogecoin is the 10th largest digital currency. DOGE is still the most valuable meme coin in the world. Shiba Inu (SHIB), known as the main competitor of DOGE, has a market cap of almost $4.5 billion.
Since the start of June 2022, the crypto market cap has dropped significantly. Bitcoin and other digital assets plunged. While the crypto market witnessed a rebound of almost 10% on Monday, Simon Peters, Market Analyst at eToro, believes that there is not much room for optimism under the current market conditions.
“Valuations are severely depressed after a buoyant performance in the past 18 months. We’re now back in the region of valuations as they were in 2020, but prices are still moving above levels we saw just 18 months ago. In terms of pullback, crypto has been here before in relative terms. Bitcoin saw a pullback of around 84% from its highs in December 2017 to its low in December 2018. As things stand currently, from an ATH of around $69,000 to now trading around $20,000 is a 71% drawdown,” Peters said.
This article was written by Bilal Jafar at www.financemagnates.com.