In a recently published article in Market Watch, a day after TESLA CEO Elon Musk said that they are suspending the use of Bitcoin as a mode of payment in purchasing its Electric Vehicles, many believed that Musk would now be using Dogecoin.

According to a published report in Yahoo News, different news outlets reported that Elon Musk is now working with the development team of Dogecoin to improve the efficiency of its transaction.

Elon Musk has long been promoting cryptocurrency, most especially Dogecoin. Dogecoin will fully fund his SpaceX mission to the moon. Elon Musk's decision to suspend the use of bitcoin is due to its impact on the environment.

Read Also: SpaceX to Launch Dogecoin-Funded Moon Satellite

(Photo : Maja Hitij/Getty Images)
Tesla head Elon Musk arrives to have a look at the construction site of the new Tesla Gigafactory near Berlin.

Dogecoin Price Immediately Jumps

After Elon Musk tweeted that he is now working with the development team of Dogecoin, its price in the trading market immediately jumps up, according to ForexTV. It confirms how influential Elon Musk is, most especially in promoting Dogecoin.

The different cryptocurrencies plummeted yesterday after the announcement of Elon Musk suspending the use of Bitcoin in purchasing TESLA electric vehicles. Many believed that he would use the ADA Cardano because of its environment-friendly mining process.

Since yesterday, many have been waiting for the tweet of Elon Musk so that they can decide where to put their investments. Just hours ago, the TESLA CEO tweeted and wrote, "Working with Doge devs to improve system transaction efficiency. Potentially promising."

Dogecoin, Now Fourth-Largest Cryptocurrency by Marketcap

Dogecoin, which was nearly useless in late 2020, has risen to become the fourth-largest cryptocurrency by market value, according to CoinMarketCap.com. It has increased more than a hundredfold this year as speculators piled into the asset class.

Dogecoin DOGEUSD, 20.72 percent rates suddenly soared after bitcoin BTCUSD, 1.12 percent suffered a significant drop in the aftermath of Musk's Wednesday announcement. Tesla's TSLA -3.09 percent $1.5 billion bitcoin acquisition and adoption of the blockchain as a payment choice was seen at the time as a symbol of growing institutional acceptance of crypto.

Although bitcoin has been regarded as a possible payment choice since its conception, Dogecoin was conceived primarily as a prank. However, the cryptocurrency has seen a remarkable rise since Musk embraced it as a meme and started tweeting about it earlier this year, including significant increases last week before the billionaire's guest-hosting appearance on Saturday Night Live.

A day after announcing that Tesla Inc. would no longer accept bitcoin as payment for its vehicles, Tesla CEO Elon Musk suggested on Thursday that another cryptocurrency, Dogecoin, could be converted into a suitable replacement. Dogecoin, a cryptocurrency, surged up to 20 percent on Friday after Musk said he was working on improving the token's transaction efficiency.

Immediately after the tweet, the price of Dogecoin increased from around $0.43 to $0.52 on the Binance cryptocurrency exchange and is expected to increase further in the coming days.

Related Article: Elon Musk Says TESLA Will No Longer Accept Bitcoin for Vehicle Purchases