DOGE Transaction Volumes Jump As Musk Floats Crypto Payments During Twitter Meet

    • Shortly after the Twitter meeting, DOGE surged by more than 8%.
    • Funding rates for DOGE spiked on June 16 as many market speculators opened long positions in the token.

    During his first meeting with Twitter employees on Thursday, Elon Musk confirmed the possibility of adding cryptocurrency payments to the micro-blogging platform. Although the former Twitter CEO Jack Dorsey added tipping in Bitcoin in 2021, Musk wants payments to be one of the most important product segments.

    The new developments in this area are interesting because Musk has hinted in the past about cryptocurrencies serving, including Dogecoin, as the currency of transactions.

    Shortly after the meeting, DOGE surged by more than 8% within two hours of trading. At the time of writing, the token value had corrected a little and was trading at $0.057 a pop, still up by 4% since the meeting. On-chain data from Santiment revealed that transaction volumes for DOGE surged right after the meeting on June 16.

    Source: Santiment

    According to data from Santiment, whale transactions worth more than $100,000 and $1 million rose by more than 65% in the 12 hours following Musk’s Twitter meeting. In the chart below, we can see a cluster of spikes in whale transactions over the past day.

    Source: Santiment

    It is important to note that Musk’s work at Twitter is closely being followed by crypto market speculators. This is because Elon has historically been vocal about his crypto investments and has therefore caused various price pumps with his tweets. This is why when Elon talked about cryptocurrency payments yesterday, many market speculators opened long positions in DOGE. This, in turn, pumped up funding rates for DOGE on June 16, according to Santiment data.

    Source: Santiment

    A funding rate is a periodic payment made to short or long traders based on the difference between perpetual contract markets and spot prices. A surge in funding rate indicates that the open interest is on the buy-side. 

    Despite Elon Musk’s plans to introduce crypto payments on Twitter, DOGE users may have to wait a little longer before anything happens. This is because the Twitter deal is still in the pipeline and has not yet been finalized. Therefore, any long-term investors looking to open fresh positions may want to act with patience, given the broader market sentiment. 

    Divyam Rakesh
    Divyam analyses market trends based on on-chain data, social data, fundamental and macro factors. He also focuses on emerging trends in the industry.

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