Dogecoin dives as Twitter dumps Shiba Inu for the blue bird

by Nathan Crooks and Adam Morgan McCarthy

Companies • April 6, 2023, 5:33PM EDT

Quick Take

Dogecoin quickly dived on Thursday after Twitter appeared to revert back to its normal blue bird logo.
The price of DOGE fell as much as 8.2% by 5:09 p.m. EDT to $0.085, according to CoinGecko.

Dogecoin quickly dived on Thursday after Twitter appeared to revert back to its normal blue bird logo, dumping a meme of a Shiba Inu dog that had graced the social network since Monday.

The price of DOGE fell as much as 8.2% by 5:09 p.m. EDT to $0.085, according to CoinGecko. It had shot up over 27% on Monday, as CEO Elon Musk joked about switching out the logo for the meme.

While the the price of the meme coin initially peaked on Monday following Musk's move, volumes have been in decline since Tuesday, according to Binance data via TradingView.

DOGE declines

Analysts had been skeptical of the rally, noting the lack of depth in dogecoin markets (14% of volume is based on DOGE/USDT trading on Binance) and the short-lived nature of these rallies, which have been historically driven by Musk's "sporadic behavior."

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"With a meme token like DOGE, the majority of its big moves come from narratives, and illiquidity acts as a leveraging force on the size of those moves," Conor Ryder, a research analyst at Kaiko, told The Block earlier in the week.

Musk hasn't yet tweeted about the switch back to blue bird logo.

About Authors

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.

Adam Morgan is a reporter covering cryptocurrency, financial markets, and economics – anything from price movements, earnings reports, and inflation to the U.S. Federal Reserve interest rate decisions and everything in between. Adam is based in London.