By Shelly Melancon (Switzerland)
Elon Musk may be losing touch with his favorite meme-based token Dogecoin after a series of attempts to instigate an uptrend on the price of the token ended unsuccessful. In a tweet on July 8, Elon had touted Dogecoin payments as better than those of flagship cryptocurrency, Bitcoin and second largest cryptocurrency by market cap, Ethereum. Despite his tweet, the ‘joke’ token only struggled to rise by less than 8%, suggesting an end to the Tesla billionaire’s influence over it.
Elon Musk Throws Shade at Bitcoin and Ethereum Payment Systems
Elon’s tweet on Thursday was greeted with mixed reactions, with most of the reactions signalling mockery of the billionaire’s comment. His latest tweet was a response to Crypto YouTuber and Doge Fanatic, Matt Wallace’s tweet who expressed delight at an upcoming update on Dogecoin’s protocol. Elon’s reply included a shade thrown at Bitcoin and Ethereum transaction speeds and costs, saying transactions on both networks are slow and costly.
BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high.
There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer.
— Elon Musk (@elonmusk) July 9, 2021
The upgrade on Dogecoin protocol proposes having on-chain activities on it as the status quo while exchanges will play the part which the Lightning Network plays on Bitcoin. Crypto platforms oversee lots of transactions within them without having to visit the blockchains of each coin. These are then integrated as usual, leading to less on-chain activities and by extension, reduced costs and less burden on the blockchain in question.
However, other Twitter users had implied that relying on outside central authorities as the foundation of a payment network was by far nowhere near the Lightning Network alternative.
Doge Yet to Recover After Nearly 70% Dip
After attaining an all-time high of $0.74 courtesy of the Tesla billionaire, the token has declined by almost 70% following the mid-May crash. But Dogecoin seems to be gradually outgrowing the influence and charm of Elon over it. The first indication was a woeful attempt earlier this week, where Elon Musk tweeted twice while making reference to Dogecoin.
In one of the tweets, he dubbed himself as ‘The Dogefather.’ Despite this, Dogecoin refused to move as expected. The token has now birthed many variants including Baby Doge and Shiba Inu, a major competitor. In contrast, the Baby Doge variant was influenced by Elon double tweets as it peaked unexpectedly. Shiba Inu has also shown prospects as traders and investors make bulk purchases.
It doesn’t seem like Elon’s influence is over in light of the market corrections, lately. Most altcoins are currently trading far below their previous ATHs as Bitcoin still retains its dominance.As the billionaire looks forward to finding value for the joke token, there is no doubt that Dogecoin still remains his favorite. Dogecoin is currently trading at $0.21.
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