Elon Musk sparked another surge in Dogecoin on Wednesday after he tweeted to his 46 million followers that he bought some for his 9-month old son, X Æ A-Xii.
Dogecoin surged as much as 16% following the tweet, spiking from $0.069 to $0.08.This isn’t the first time an Elon Musk tweet sparked a rally in the cryptocurrency. Nor is it the second time.
Dogecoin is a shiba inu meme-inspired cryptocurrency that was started as a joke in 2013.
“Bought some Dogecoin for lil X, so he can be a toddler hodler,” Musk tweeted.
The rally helped Dogecoin reclaim a total market valuation of $10 billion, which makes it bigger than these 11 well-known companies.
Dogecoin differs from bitcoin in that there is no hard limit on the total supply of coins. Bitcoin has a fixed supply of about 21 million coins, of which not all have been mined yet. Dogecoin on the other hand has more than 100 billion coins outstanding, with 5 billion in new coins hitting the supply every year.
Even the founder of dogecoin, Billy Markus, can’t make sense of the surge in the coin he started as a joke. Markus told The Wall Street Journal, “The idea of dogecoin being worth 8 cents is the same as GameStop being worth $325, it doesn’t make sense.”
Musk’s affinity for cryptocurrencies has been on full display this week, given Tesla’s disclosure that it purchased $1.5 billion worth of bitcoin in January. The announcement helped spark a more than 20% surge in the popular cryptocurrency.