Dogecoin Spikes more than 20% after the Announcement made by Elon Musk

Dogecoin skyrocketed as much as 23% on Tuesday after Elon Musk said Tesla would accept as payment for some of its merchandise. It last traded 18.9% higher.

Elon Musk tweeted that Tesla will make some merch buyable with Doge & see how it goes. Musk has frequently talked up Dogecoin, calling it his favorite digital coin. Dogecoin was initially started as a joke by its creators Billy Markus and Jackson Palmer, in 2013. It takes its branding from the Japanese Shiba Inu dog, which inspired the original “doge” meme.

Tweets from Musk and surging interest from a wave of amateur investors fueled a speculative frenzy in the cryptocurrency earlier this year, driving its price higher. Dogecoin went from being worth just a fraction of a penny at the start of the year to notching a record-high price above 74 cents in May.

The meme inspired cryptocurrency plummeted sharply — at just 20 cents a coin, the token is down more than 70% from its all-time high.Dogecoin recently found a rival in shiba inu, a so-called meme token that bills itself as a  killer.” Shiba inu is currently the 13th-biggest coin by market value, having briefly surpassed at one point.