Elon Musk And Dogecoin: The Offbeat Alliance

In the crypto world, the connection between meme coins and their community holds a special place, but in some cases it dazzles with their fame. The bond between Dogecoin and Elon Musk is one such example. In today's article, we will break down what makes DOGE unique and why the Tesla CEO respects it.

What You Need To Know About Dogecoin

Dogecoin is the very first meme coin, created in 2013. They were inspired by a viral meme with a Shiba Inu dog named Kabosu (you can see it in the image of the coin), which spread across Twitter and 4chan. The developers aimed to create something lighthearted and fun—completely opposite to serious cryptocurrencies like Bitcoin. Unlike the main cryptos, Dogecoin has no global mission; it just amuses users and is considered a kind of “coin for people”.

At first, DOGE went largely unnoticed and had little value, but everything changed: today, it is now one of the most popular coins with a market capitalization of $25 billion and a daily trading volume close to a billion dollars. The starting point of DOGE's rise came in 2018 when Elon Musk tweeted about it. After that, he started mentioning DOGE more frequently in various contexts. Eventually, this led to active support for the meme coin from the world’s richest and most influential entrepreneur.

Let's take a closer look at the whole story about Elon Musk and Dogecoin and try to answer the question: what makes DOGE so important to him?

The Whole X-Story Of Musk And Doge

Let’s break down the entire history year by year, as each period has many interesting events.

2018

As mentioned earlier, 2018 was the year Musk first took notice of Dogecoin. In a tweet, he asked one of the DOGE’s creators, Jackson Palmer, to help tackle a scam bot problem on Twitter (known as “X” now).

2019

This year, Elon Musk posted a tweet that Dogecoin was his favorite cryptocurrency, and later he even joked about becoming the director of DOGE. This happened under a fan account’s post asking, “Who could become CEO?”. The reaction to this was significant: DOGE's price surged, its market capitalization reached $400 million.

2020

For Dogecoin, this year was relatively quiet. The most notable moment came at the end of the year, in December, when Musk tweeted, “One word: Doge”. This single tweet caused DOGE’s price to jump 20% in just a few hours, but a few days later the price settled back to its previous level.

2021

2021 was a landmark year for Dogecoin: firstly, the entire crypto market was in a bull run trend, driving prices higher. Secondly, Musk fueled DOGE’s growth not only with tweets but also beyond the boundaries of social media. Here’s a breakdown of the brightest events:

• In February, Elon Musk called Dogecoin “the people’s crypto”, which again shows a sharp rise by 40%. Shortly after, he tweeted that he bought DOGE for his son, calling him “toddler hodler”. This again sparked a short-term rise of 18%.

• In May, Elon Musk appeared on Saturday Night Live (SNL), where he called himself “Dogefather”, after which the DOGE’s price skyrocketed to an all-time high of $0.73. However, during the show, Musk called Dogecoin “just a hustle”, which disappointed fans. This led to a decrease in confidence in the coin, and just two weeks later, on May 22, the price of the coin dropped to $0.31.

• Toward the end of the year, Elon Musk made headlines by announcing a partnership with Dogecoin developers. The goal was to improve DOGE’s blockchain, making it more efficient, environmentally friendly, and a cheaper payment alternative to Bitcoin.

2022

That year, Tesla, Musk’s automotive company, started accepting DOGE as payment. There were also discussions about doing the same for SpaceX and Starlink, though Musk never gave a definitive answer.

Due to the frequent price swings caused by Musk’s tweets, the American filed a lawsuit against him, accusing him of market manipulation. Fortunately, the litigation ended in Musk's favor: the judge described the young businessman as “ambitious” and ruled that his Dogecoin-related actions were merely jokes, not something “a reasonable investor would rely on”. Two years later, the lawsuit was officially dropped, but the situation remains a significant chapter in DOGE’s history.

2023

This year went fairly quiet, but a couple of memes still managed to boost Dogecoin’s price. First, in February, Musk introduced his dog as the CEO of Twitter. Then, in April, he briefly replaced Twitter’s blue bird logo with the DOGE symbol, leading to a 5% price increase.

2024

This period is particularly interesting as Dogecoin moves to a new level and infiltrates politics. We should recall that in November 2024, Donald Trump won the U.S. presidential election, with strong support from Elon Musk. The more Musk engaged in Trump’s campaign, the more Dogecoin’s price surged. For example, during his election campaign, Trump announced that if he won, Musk would head a new government agency called the Department of Government Efficiency (DOGE).

2025

As of March 2025, there have been no notable tweets from Elon Musk regarding DOGE, but several significant events have taken place within the crypto industry as a whole. In early March 2025, President Trump announced the creation of a U.S. digital reserve, which takes a big step towards cryptocurrency adoption. This news could have a positive impact on all cryptocurrencies, including meme coins like DOGE. In the future, it may lead to greater adoption of meme coins in real life, potentially as convenient payment methods.

What will happen next, and how far will this funny dog go? Only time will tell. For now, one thing is clear: Elon Musk loves modern technology, memes, and dogs, as he stated in the Full Send podcast. He enjoys Dogecoin because of its lighthearted nature and its refusal to take itself too seriously compared to other cryptocurrencies.

What do you think about this offbeat alliance? Share your thoughts in the comments.