Elon Musk has once again Tweeted about Dogecoin and while the attention added to the value, the effect appears to have been somewhat short-lived. The tech CEO has become known for having an impact on the cryptocurrency market and especially when it comes to meme coins like Dogecoin. After the latest round of Tweets, however, is the Musk effect starting to come to an end?

While Bitcoin and Ether remain the go-to cryptocurrencies for many, this year has seen the rise of the meme coin. Whether it is Shiba Inu, Dogecoin, or even Tiger Coin, these meme cryptos have proven particularly popular. Arguably, Dogecoin has proven to be the most interesting and has even resulted in a variety of spin-off coins emerging. The latest of which happens to be Baby Doge, one that’s being self-marketed as the “world's best community coin.” However, a significant reason for the increased Dogecoin attention in 2021 is Musk.

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The latest Dogecoin intervention by Musk came earlier today when the Tesla and SpaceX CEO Tweeted a "Release the Doge!" Dogecoin-related message along with an image of the Godfather, presumably in reference to the Dogefather label often attached to Musk. This was then followed by another Tweet specifically name-dropping Baby Doge. While both Tweets instantly resulted in a sudden spike in value, according to Coinbase, both quickly also dropped in value again.

Is The Musk Effect Coming To An End?

Elon Musk Doge

As of right now, both Dogecoin and Baby Doge remain slightly higher than they were prior to Musk’s Tweets, but still well below the value they momentarily hit following Musk’s comments. Of course, this is possibly to be expected with a market as volatile as crypto, but the effect this time around seems to be a lot less impressive than on recent occasions. The community surrounding Dogecoin often relies on Musk Tweeting to help push “ Doge to the moon” - the coin’s long-term goal of getting the value of Dogecoin up and above $1.

To be fair to Musk, it might not be so much that a ‘Musk effect’ is starting to end, as much as it is the current insecurity surrounding the market in general. While cryptocurrencies have always generally been considered volatile, their value has varied far more wildly in recent weeks due to the China crypto ban. With China attempting to curb crypto mining and, to some degree, acceptance of cryptocurrencies within the country, all cryptocurrencies have recently seen their value drop to far lower levels than at any time in the last year. In this sense, it may not be so much that the Musk effect is waning, but more a case of the Musk effect on Dogecoin and other cryptocurrencies not enough to counteract the newer and more powerful China effect.

Next: China Crypto Ban Driving Down Nvidia & Asus Graphics Card Prices

Source Elon Musk/Twitter