According to CoinGlass data, more than 130 million DOGE were liquidated in 24 hours, making it the third-most liquidated cryptocurrency after the top two by market capitalisation: BTC and ETH.
DOGE’s price began to rise when Twitter’s board of directors approved Elon Musk’s $44 billion takeover bid, effectively handing control of the microblogging platform to the CEO of Tesla and SpaceX.
Twitter chair Bret Taylor said in a statement that the board “conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” and that the transaction “will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Twitter shareholders will receive $54.2 in cash for each share of Twitter common stock they own, a 38% premium to the company’s closing price at the beginning of the month. It will be one of the largest leveraged buyouts in history if completed.
Musk is a well-known supporter of Dogecoin. He, along with DOGE’s co-creator, has pushed for McDonald’s to accept payments in the meme-inspired cryptocurrency, and has hinted that SpaceX, which he also owns, may soon accept DOGE payments.
Tesla, his electric vehicle manufacturer, accepts DOGE payments on its website for specific products such as its “cyberwhistle,” “Giga Texas” belt buckle, and “cyberquad” four-wheeler for kids. Musk has suggested that Twitter accept DOGE as payment.
DOGE’s liquidations were accompanied by a substantial increase in trading volume, surpassing Ethereum on Binance, the biggest cryptocurrency trading platform.
DOGE passed Ethereum in volume on binance.. #Dogecoin pic.twitter.com/79QoG9YfLN
— 96sdrawkcab (@96sdrawkcab) April 26, 2022
According to available blockchain data, the majority of DOGE holders are “in the money.” It’s worth mentioning that the data only shows on-chain addresses and so does not reflect the performance of investors whose assets are held on cryptocurrency exchanges. When a significant portion of a cryptocurrency’s investors are “in the money”, it indicates that the asset has become overbought and is due for a correction.
DOGE’s popularity has grown over time. AMC, the largest movie theatre chain in the United States, added two meme-inspired cryptocurrencies, Shiba Inu and Dogecoin, as payment methods last month, a week before they were supposed to go live.
