Elon Musk’s acquisition of Twitter could have influenced Dogecoin’s sharp growth

Analysts drew attention to the sharp rise in the Dogecoin meme cryptocurrency, which has increased by 11.70% over the past day. At the time of writing, DOGE is trading at $ 0.067.

One of the probable reasons for DOGE’s growth is the statement of its longtime supporter, billionaire Elon Musk, who said on Monday that he would close the deal to buy Twitter by the end of the week. According to Musk, the social network will have a new owner this Friday. Amid these developments, the activity of institutional investors has also increased significantly, with 85 DOGE crypto whales conducting numerous cryptocurrency transactions.

As for the Musk vs. Twitter case, if the eccentric billionaire does acquire the social network, 75% of its employees will be laid off. As Musk said a few days ago, in order to transform Twitter, he will reduce the staff from 7,500 employees to just over 2,000, which will significantly affect Twitter’s operations.

Notably, DOGE is not the only cryptocurrency to show growth this week — the value of Dogechain (DC), a cryptocurrency launched this year based on Dogecoin, has increased by 228% over the past week. Dogechain is an EVM (Ethereum Virtual Machine) compatible, second-level blockchain based on Polygon, designed to create an efficient connection between Dogecoin and Web3. Dogechain’s infrastructure allows DOGE holders to transfer their DOGEs to a blockchain with greater technical capabilities.