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Dogecoin gains 8% on claim Elon Musk will upgrade DOGE with Vitalik Buterin

Dogecoin gains 8% on claim Elon Musk will upgrade DOGE with Vitalik Buterin

Reports have surfaced suggesting that Ethereum (ETH) co-founder Vitalik Buterin and Tesla (NASDAQ: TSLA) CEO Elon Musk will come together and begin working on upgrading Dogecoin (DOGE).

As a result, the price of Dogecoin is going through the roof. Dogecoin is currently changing hands at $0.08761, up 8.46% in the last 24 hours and around 2.4% across the previous seven days.

DOGE One-day price chart. Source: Finbold

Interestingly, the price of DOGE added over $1 billion to its market cap in a little over an hour, from $10.9 billion to $12.07 billion before retracing slightly.

DOGE One-day market cap chart. Source: CoinMarketCap

The spike in the price of DOGE came after crypto podcaster and influencer David Gokhshtein told his 700,000 followers that he believes Ethereum co-founder Vitalik Buterin and Twitter CEO Elon Musk will soon begin working together to improve Dogecoin in a tweet on November 25.

Buterin and DOGE shift to Proof-of-Stake

Notably, Finbold reported in September 2021 that Buterin said DOGE should consider switching to Proof-of-Stake (PoS), saying that the Ethereum code can easily be used for that transition. 

The transition to Proof-of-Stake is also highlighted on the Trailmap for Dogecoin. Not only does Vitalik have the legal right to make such ideas in his capacity as an observer and founder of Ethereum, but he also does so in his capacity as a member of the Dogecoin Foundation, which he joined in 2021. 

Earlier in February this year, Buterin confirmed he’s assisting in Dogecoin’s Proof-of-Stake transition. The Ethereum co-founder referenced a proposal published on Christmas last year, which outlined a strategy to execute the DOGE proposal for a ‘Community Staking’ version of PoS, which would let more individuals participate in managing the Dogecoin network.

“They recently released something, the Dogecoin Foundation in collaboration with Vitalik Buterin to create community staking, it got published last year at Christmas.”

Will Dogecoin continue to pump?

With DOGE’s price climbing, crypto trading expert Altcoin Sherpa tweeted that it’s unlikely the meme coin will continue to climb:

“DOGE: Moving prob due to some Elon news. Don’t really think this will be a sustainable pump given the market conditions; probably can be shorted around $.09.”

DOGE chart to short. Source: Altcoin Sherpa

Dogecoin’s ability to maintain the pump is very doubtful given the current market circumstances and the fact that it has already begun to retrace, but this won’t stop DOGE investors from keeping a close eye on their notifications in the meanwhile.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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