Elon Musk supports DOGE holders after $258 billion Dogecoin lawsuit

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  • Elon Musk’s lawyers argued that the billionaire CEO’s tweets supporting Dogecoin are not unlawful. 
  • On-chain activity in Dogecoin climbed in response to the development, with higher volume of active addresses and higher transaction count. 
  • Dogecoin price climbed 3.5% since Friday, as the meme coin resumed its uptrend. 

Elon Musk’s lawyers seek to get the $258 billion lawsuit that accuses the billionaire of running a pyramid scheme to support the meme coin, Dogecoin. Musk’s lawyers consider the lawsuit fictitious and argue that the billionaire CEO’s tweets supporting DOGE are not unlawful. 

In response to the development, there has been a spike in activity in Dogecoin. According to on-chain metrics both transaction count and active addresses in DOGE climbed. 

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Elon Musk’s $258 billion Dogecoin lawsuit update

Elon Musk was accused of running a “pyramid scheme” to support Dogecoin, in an attempt to push DOGE prices higher. At a Manhattan federal court  Musk’s lawyers labeled the lawsuit as “fiction” and argued that the Tesla CEO’s comments were “silly tweets” and not unlawful. 

Musk’s lawyers argued that the CEO’s intention was not to defraud anyone and the statements quoted in the lawsuit, “no highs, no lows, only Doge,” are too vague to support claims of fraud or running a “pyramid scheme.”

How Dogecoin holders reacted to the development

Based on on-chain metrics from crypto intelligence tracker Santiment, the number of active DOGE addresses and the transaction count in Dogecoin increased. The spike in the metrics is indicative of the meme coin’s rising popularity and holders’ likely support for Musk’s move. 

Dogecoin daily active addresses and transaction count

Dogecoin daily active addresses and transaction count

Typically, a buzz in on-chain activity is considered bullish for an asset. 

The Shiba-Inu-themed cryptocurrency’s price climbed nearly 4% overnight. DOGE holders remain bullish as the meme coin resumes its uptrend.