KEY POINTS

  • Dogecoin rises as much as 13% Tuesday
  • Trading volumes doubled Tuesday afternoon
  • Outperforms broader market

Dogecoin rose as much as 13% on Tuesday, outperforming sluggish gains in the broader crypto market, after unconfirmed reprots that Tesla was preparing to accept the meme coin as payments for its electric vehicles.

Multiple Twitter users shared screenshots of a supposed code discovered on Tesla's official website, showing the inclusion of DOGE as a payment option. Rumors have it that Tesla would accept DOGE as a payment method for its vehicles, including the Model 3, Model Y and Model X.

This claim aligns with Tesla CEO Elon Musk's long-standing romance with the meme coin. The tech billionaire said in December that "Tesla will make some merch buyable with Doge & see how it goes."

However, Musk did not provide a timeline or specifically mention that the dog coin would be accepted as payment. DOGE and Musk have a history and Twitter has been a witness to the billionaire's tweets and memes about Dogecoin.

The rumors spurred the token's trading volume to double with almost $1.6 billion in DOGE changing hands Tuesday afternoon.

He even adopted a Shiba Inu puppy to pay tribute to the meme token. Aside from being a Dogecoin bull, Musk is also rumored to have offered advice to help to the developers to shape the cryptocurrency's ecosystem. Musk's advice is said to have played a major role in Dogecoin's performance.

Dogecoin, the world's first meme coin, was up 6.5% at $0.1538 at 6.30 a.m. ET Wednesday. The token has lost more than 9% of its value in the seven days despite the gains on Tuesday and Wednesday.