Dogecoin’s price is $0.1911 at the time of writing, up 12% in the past 24 hours, according to CoinMarketCap.
It also hit a high of $0.2032 in the past day.
Tesla chief executive officer Elon Musk is the man yet again behind the price movement of Dogecoin.
This time he tweeted that Tesla merchandise can be bought with Dogecoin.
Mr Musk has been teasing this since the middle of December.
“Tesla will make some merch buyable with Doge & see how it goes,” the billionaire tweeted.
While Dogecoin has soared in recent days, the price is down when compared to the highs it reached earlier this year, when token soared to $0.70.
The surge came after celebrities including Mr Musk and Snoop Dogg publicly backed the coin.
However, Mr Musk’s appearance on Saturday Night Live in May sent Dogecoin’s value plunging.
Dogecoin’s price was over $0.70 on the Saturday of the show, but shortly after Musk’s mention of the cryptocurrency, the price fell to $0.47.
It then went on to fall to lows of $0.25.
Ever since then, Dogecoin has been extremely volatile.
Dogecoin was first launched back in 2013 and has the image of a Shiba Inu dog as its logo.
The image became a popular internet meme called doge, and it features the dog surrounded by text in the comic sans font with words like “much wow”.
Software engineers Jackson Palmer and Billy Markus originally created Dogecoin as a joke based on this meme.
It has been marketed as the “fun” version of bitcoin but has gained in value and attracted more serious interest since then.
Today Dogecoin is known as a meme coin, which typically gains off a social media or an internet-based joke rather than fundamentals of the coin itself.
Dogecoin price for 2022
It’s almost impossible to predict whether Dogecoin’s price will fall or rise this year as cryptocurrencies are so volatile.
The market is unpredictable as it affected by a number of factors, including regulatory crackdowns and comments by high-profile individuals such as Elon Musk.
Sarah Coles, a personal finance analyst at investment firm Hargreaves Lansdown, previously told The Sun: “Forecasting what’s going to happen next to meme coins is like predicting what’s likely to set off the next tantrum in a room full of toddlers.
“Because it has no underlying value, it’s not generally used for transactions, and is a terrible store of value, the price is driven by highly unpredictable sentiment.
“So while people may point to patterns in the past and make guesses as to whether they will happen again, in reality, it’s impossible to say with any degree of certainty.
“As with those toddlers, any one of them could kick off at any time.”
But that doesn’t stop some crypto fans from forecasting what they think will happen to Dogecoin’s price.
Wallet Investor predicts that Dogecoin will hit $0.350 in the next year.
Meanwhile, Digital Coin Price is a little less bullish predicting that the price will reach just $0.2655 in 2022.