Elon effect? Doge Runs Amid Rumors Tesla CEO Is Working With Vitalik Buterin On Meme Coin Upgrade

Dogecoin DOGE/USD has been in a tear since Wednesday, and the rally has accelerated over the weekend.

What happened: Doge broke above the $0.10 psychological resistance on Sunday and was last seen at $0.1045, up 15.68% , according to data from Benzinga Pro. The rally in the crypto meme was accompanied by significant volume, with 1.75 billion coins traded in hands. The dog-themed currency rally came even as most major cryptocurrencies saw trading muted.

David Gokhshtein, who heads crypto media company Gokhshtein Media, tweeted on Friday that he expects Tesla CEO Elon Musk and co-founder of Ethereum ETH/USD, Vitalik Buterin, work together to upgrade Doge. The two entrepreneurs, meanwhile, are unlikely to work on Bitcoin BTC/USD as Buterin made an attempt in the past but was unsuccessful, he added.

Musk's alleged involvement could have been the reason for Doge's spike, reports say.

See also: Litecoin and 4 other cryptos that rose 20% or more this week even as bitcoin stagnated< /p>

Musk's takeover of Twitter proved positive for Doge as crypto investors began to discount the possibility of the billionaire using the meme coin as a payment option on the social media platform

Why it matters: Dogecoin developers released their Core 1.14.16 update at the end of July. The minor release introduced critical security updates and network efficiency changes. Musk then commented that the update was important.

Meanwhile, Ethereum underwent the merger in mid-September, which completed the crypto's transition to proof-of-stake consensus. This greatly reduces the power consumption of the crypto.

Doge, on the other hand, is an open source peer-to-peer crypto launched in December 2013, and it has the dog breed Shiba Inu as its mascot.

Read Next: Best Cryptocurrencies

Photo: Courtesy of TechCrunch and Dunk on flickr.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.