Overall, Dogecoin remains one of the most easily influenced cryptocurrencies on the market in terms of price.
Ever since 2020, DOGE either soared or went underwater, following bits of news, speculation, and even mere tweets. Interestingly, most of the outside influences that pull Dogecoin up and down are often centered around billionaire entrepreneur Elon Musk.
However, in recent developments, Dogecoin has proved its price isn't the only thing vulnerable to outside influences.
The hash rate of the cryptocurrency network has been observed to have jumped. A very convenient coincidence, considering how this is happening during the same period as the finalization of the Elon Musk/Twitter deal.
Recently, Dogecoin's hash rate soared and hit a 7-month high, with a value of 815 Terahashes per second, according to data from CoinWarz. Although the cryptocurrency's hash rate has normalized to a value of 620.69 terahashes per second, the cryptocurrency's 815 terahash high brought it ever closer to its all-time high of around 1.34 petahashes per second earlier this year.
This spike in Dogecoin's hash rate comes at almost the same time as the buy-deal finalization between Twitter and Elon Musk. It may point to growing interest in cryptocurrency following Musk's plan to integrate it into one of Twitter's payment systems.
Dogecoin's hash rate high is still at a -19% difference from its all-time high earlier this year. However, it indicates a sudden interest in Dogecoin from the crypto community.
Dogecoin is the second largest Proof-of-Work Chain in the world, and the sudden inflow of users and investors must have taken a toll on its network's computing power. This may be a sufficient explanation for the sudden jump in its hash rate.
According to a Bloomberg report, the deadline for the Twitter deal closure is fast approaching, and more spikes like this are likely to happen along the way.
It is no secret that Musk is a big proponent of Dogecoin.
The crypto community generally believes that after the Twitter deal's finalization, Dogecoin may be integrated into one of the core payment systems of the social media giant.
Over time, Musk has repeatedly stated that he will continue to support Dogecoin and has even started accepting the memecoin as payment in two of his companies, Tesla and The Boring Company.
Both institutional and retail investors appear to be preparing for a pump before or after the Twitter deal and have begun accumulating DOGE. The BNB chain whales have also begun accumulating the cryptocurrency and have even pushed DOGE back into their list of top 10 holdings.
DOGE currently trades at $0.059 and is down by 0.4% over the last 24 hours when writing, according to data from CoinMarketCap.
On the charts, Dogecoin continues to trade in a sideways range between $0.068 and $0.055, showing low volatility and an overextended consolidation.
Overall, Dogecoin needs sufficient upwards or downwards momentum from the bulls or bears to break out of the sideways price action in this consolidation phase.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)