The cryptocurrency Dogecoin experienced notable fluctuations in its price following the death of Kabosu, the Shiba Inu dog that inspired the iconic meme behind the digital currency. The initial spike occurred early in the morning when news broke about Kabosu’s passing, followed by another surge later in the day after a tweet from Elon Musk.

At approximately 1:40 a.m. ET, Dogecoin’s price saw its first spike as the community mourned Kabosu's death. The official Dogecoin account on X (formerly Twitter) shared the news, stating, "Today, Kabosu, our community's shared friend and inspiration, peacefully passed, in the arms of her person. The impact this one dog has made across the world is immeasurable."

Kabosu's viral meme in the early 2010s led to the creation of Dogecoin in December 2013. Since then, DOGE has become the largest memecoin by market capitalization and has inspired numerous other dog-themed cryptocurrencies.

The second price spike for Dogecoin occurred around 11 a.m. ET, following a tweet from Elon Musk, one of the most influential proponents of the cryptocurrency. Musk, the CEO of Tesla, X, and SpaceX, tweeted an image of the Shiba Inu meme alongside a gorilla, referencing another internet icon. "OG Doge has ascended to heaven to be with his friend Harambe," Musk wrote, invoking the memory of the famous gorilla Harambe, who was killed in 2016 after a child entered his enclosure at the Cincinnati Zoo, sparking widespread internet memorials and memes.

Elon Musk’s influence on Dogecoin is well-documented. His frequent tweets and public endorsements have previously driven the memecoin to record highs, notably during the summer of 2021. Despite his substantial impact on the cryptocurrency market, Musk stated in December 2023 that he spends "hardly" any time thinking about cryptocurrency.

At the time of publication, Dogecoin was trading around $0.17, reflecting a 3.8% increase over the past 24 hours, according to The Block’s pricing data. During this period, approximately $2.8 billion worth of Dogecoin was traded, highlighting the substantial activity and interest in the cryptocurrency following the news.

The impact of Kabosu's death also rippled through related tokens, causing brief price increases for other dog-themed cryptocurrencies such as Shiba Inu (SHIB) and FLOKI (FLOKI).

The Legacy of Kabosu and Dogecoin

Kabosu’s influence on the digital world extends far beyond the creation of Dogecoin. The Shiba Inu’s image became a symbol of the early internet meme culture, which in turn laid the foundation for one of the most popular and recognizable cryptocurrencies. Dogecoin’s community, known for its charitable donations and playful spirit, continues to honor the legacy of Kabosu.

Market Reactions and Future Implications

The price movements in Dogecoin following Kabosu’s death and Elon Musk’s tweet underscore the volatility of memecoins and the significant influence of social media and public figures on cryptocurrency markets. As Dogecoin and other memecoins navigate the evolving landscape, the blend of cultural phenomena and digital finance will likely continue to shape their trajectories.

While the immediate market reactions reflect a blend of nostalgia and speculative trading, the long-term impact of such events on the value and perception of cryptocurrencies like Dogecoin remains to be seen. For now, the community continues to celebrate Kabosu’s legacy, marking a poignant moment in the history of digital culture and cryptocurrency.