Dogecoin rallies 20% as payment option is now available at Tesla stores

You can now purchase belt buckles, chargers and other merchandise starting today, using dogecoin as a payment option in Tesla online stores.

This caused the price of Dogecoin to surge 20% after the news as it was trading at an intraday high of over 20 cents at the time of writing. However, that rally in Tesla’s stock price itself has yet to be tested, as it is currently down 0.55% in pre-market skirmishes.

The store displays pricing information in USD and Dogecoin. For example, the Giga Texas Belt Buckle 835 DOGE lists (≈ $155.5); The Cyberquad sells for 1,2020 DOGE ($2,296), while the Cyberquad sells for 300 DOGE (≈ $57).

What you should know

The move comes nearly a month after Tesla CEO and world’s richest man Elon Musk announced, in December 2021, that the electric car maker would accept dogecoin as payment for its merchandise. He said:Tesla will make some items purchasable with the Doge to see how it goes.”

Dogecoin was the meme sensation in 2021 that caught the attention of the world’s richest man, Elon Musk. Elon has been a staunch supporter of the coin as he constantly tweeted that the coin will trade at $1 in the future. It brought interest to the token and caused the price of the token to peak at around 70 cents in May 2021 before a market crash that saw it lose more than 50% of its value.

Dogecoin’s market capitalization has grown to a peak of around $90 billion, making it more valuable than the likes of Moderna, Snowflake, Uber, FedEx and BMW. Dogecoin is ranked 5th based on total cryptocurrency market capitalization.

Earlier this year, Tesla started accepting bitcoin as payment for its electric cars. The pilot proved short-lived amid growing concerns about Bitcoin’s energy use and was quickly brought down.

DOGE is now trading at $0.1944 as of the time of writing with a market capitalization of $25.6 billion.