Dogecoin ($DOGE) short-sellers have seen over $20 million in liquidations over the last day after the price of the meme-inspired cryptocurrency rallied in light of Twitter accepting Elon Musk’s buyout bid.
According to data from CoinGlass, first reported by Benzinga, well over 130 million DOGE were liquidated in 24 hours, making it the third-most liquidated cryptocurrency after the top two by market capitalization: BTC and ETH.
The price of DOGE started soaring after Twitter’s board agreed to Elon Musk’s $44 billion bid to buy the company, effectively handling control of the microblogging platform to the CEO of Tesla and SpaceX.
In a statement, Bret Taylor, Twitter chair, said the board “conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” and added that the transaction “will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Twitter shareholders will now receive $54.2 in cash for each share of Twitter common stock they own as Musk’s offer represented a 38% premium to the company’s closing price at the beginning of the month. If completed, it will be one of the largest leveraged buyouts in history.
Musk is a well-known supporter of Dogecoin, who has collaborated with developers to improve the cryptocurrency. Along with DOGE’s co-creator, Musk has pushed for McDonald’s to accept payments in the meme-inspired cryptocurrency and has hinted SpaceX – a company he also owns – could soon accept payments in DOGE.
His electric car maker, Tesla, accepts DOGE payments on its website for specific products such as its “cyberwhistle,” its “Giga Texas” belt buckle” and its “cyberquad” four-wheeler for kids. Musk has suggested Twitter could use DOGE as a means of payment.
DOGE’s liquidations were accompanied by a significant rise in trading volume, which saw it surpass Ethereum on leading cryptocurrency trading platform Binance.
As CryptoGlobe reported, most DOGE holders are “in the money” according to available blockchain data. The data, it’s worth noting, only represents address on-chain and as such does not indicate how investors who custody their funds on cryptocurrency exchanges are doing. When a large percentage of a cryptocurrency’s investors are “in the money” it implies an asset is overbought and may be due for a correction.
DOGE’s adoption has been growing over time. Last month, leading U.S. movie theater chain AMC added two meme-inspired cryptocurrencies, Shiba Inu and Dogecoin as payment methods, a week before they were scheduled to go live.
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Featured image via Unsplash