When Musk's name is associated with cryptocurrency, the market is never short of waves, but this time his actions regarding DOGE (Dogecoin) have plunged the entire ecosystem into unprecedented 'division' — the miner community is collectively anxious, retail investor communities are in constant debate, and DOGE, once united by 'meme faith,' now stands at a crossroads of 'practical transformation' and 'departure from the original intention.' This chain reaction triggered by Musk is fundamentally rewriting DOGE's survival logic.
Musk's 'key step': from 'talking up' to 'deep binding.'
Unlike past 'one-liner' boosts on social media, Musk's recent actions target DOGE's core ecosystem. According to internal Tesla information and disclosures from the blockchain industry, two initiatives led by Musk have already been implemented: First, some Tesla supercharging stations have begun testing accepting DOGE payments and have clearly stated that they will 'optimize DOGE's transaction speed to accommodate high-frequency payment scenarios'; second, SpaceX has reached a collaboration with DOGE's core development team, planning to integrate DOGE into 'a small settlement system related to space exploration supply chains,' with the first applications covering cross-border small payments for satellite component procurement.
These two moves have completely shattered the attribute of DOGE as a 'pure speculative asset.' Previously, while DOGE became a top ten cryptocurrency by market capitalization due to Musk's endorsement, it always lacked practical application scenarios. Issues like slow transaction speed and unstable fees made it difficult to shed the label of a 'meme coin.' This binding with Tesla and SpaceX not only injected 'practical value' into DOGE but also pushed it towards a transformation into a 'payment cryptocurrency' — market data shows that within 48 hours of the announcement, DOGE's on-chain transaction volume surged by 320%, with the proportion of 'small payment transactions' rising from less than 5% to 28%, setting a historical high.
Miners vs. Retail Investors: A dispute over 'interests' and 'beliefs.'
Musk's actions have caused significant controversy within DOGE, with divisions between miners and retail investors rapidly escalating, and various cryptocurrency forums and communities have become 'battlefields.'
Miners: 'Collective opposition' under computing power anxiety.
For DOGE miners, Musk's push for 'payment transformation' is considered 'bad news.' DOGE uses the Scrypt algorithm, and miners' income primarily relies on 'block rewards + transaction fees.' However, Tesla and SpaceX's push for 'optimized transaction speed' essentially requires reducing DOGE's block confirmation time — currently, DOGE's block time is about 1 minute. If it needs to adapt to high-frequency payments, it must be shortened to 10-15 seconds, which means miners' output efficiency will be diluted.
More critically, to ensure payment stability, Tesla plans to build a 'DOGE exclusive node cluster' to enhance transaction processing capabilities through centralized nodes. This move has directly raised concerns among miners about 'computing power monopoly.' A head of a DOGE mining farm openly stated on social media: 'Musk's node cluster will seize over 70% of the transaction verification rights, ordinary miners' fee income will plummet by 50%, and we may not be able to recoup the costs of our mining machines.' Data also confirms this anxiety: after the announcement, DOGE's computing power experienced unusual fluctuations, and some small to medium-sized mining farms began to shut down, with the overall network computing power decreasing by 18% within 24 hours and second-hand mining machine prices crashing by 30%.
Retail Investors: Internal division between believers and speculators.
The divergence among retail investors is more complex, presenting a stark contrast of 'believers cheering and speculators panicking.'
'Believers' believe that Musk's actions have realized DOGE's 'original intention.' Many early holders of DOGE indicated that their initial choice of DOGE was precisely because they believed in its 'decentralization and closeness to ordinary users,' and this collaboration with Tesla and SpaceX has transformed DOGE from a 'joke coin' to a 'currency that can actually be used.' An administrator from a DOGE community mentioned in an interview: 'We have waited for this day for five years. DOGE no longer relies on 'Musk's words' to fluctuate, but has its own value support — this is what long-term holding should look like.'
However, the 'speculators' among retail investors are in a panic. This group of investors primarily entered during a surge in DOGE in 2023, with the core demand being 'short-term arbitrage.' Although Musk's push for 'payment transformation' brought a short-term price increase (after the announcement, DOGE's price surged by 45%), it also means that DOGE's price fluctuations may narrow — the prices of practical cryptocurrencies rely more on 'the progress of application scenarios' rather than 'market sentiment speculation.' A retail investor complained on a forum: 'I bought DOGE to make quick money, and now it has turned into a 'payment coin,' with slow price increases and instability. Musk has cut off our financial lifeline!'
Has DOGE 'transformed'? Three major uncertainties remain for the future.
Although Musk's actions have created an opportunity for DOGE, the question of whether this 'change' can be sustained still faces three major uncertainties.
First, the stability of the implementation of application scenarios is in doubt. The DOGE payment test at Tesla's supercharging stations only covers three items, and the payment for DOGE is limited to 'charging service fees,' not extending to vehicle purchases; SpaceX's supply chain settlement application is also in the 'small-scale pilot' stage and has not yet formed a scale. If subsequent application progress does not meet expectations, DOGE may face the dilemma of 'losing its practical value.'
Second, regulatory risks cannot be ignored. DOGE has previously been classified multiple times by the U.S. SEC (Securities and Exchange Commission) as a 'potential security asset' due to its 'lack of practical value.' Now, transitioning to a 'payment currency' might trigger stricter financial regulations — the EU's (Markets in Crypto-Assets Regulation) (MiCA) clearly states that 'cryptographic assets used for payment must meet anti-money laundering, anti-terrorist financing, and other compliance requirements,' whereas DOGE's current anonymous trading characteristics may struggle to pass regulatory scrutiny. If forced to adjust its algorithm, it will further impact the miner and user ecosystem.
Third, the loss of 'decentralization' attributes. The 'node cluster' promoted by Musk is essentially a 'semi-centralized' model, contrary to the original 'decentralized' concept of DOGE. If Tesla and SpaceX further control the nodes and transaction verification rights of DOGE in the future, DOGE will become an exclusive token for Musk's enterprises, losing the core value of cryptocurrency — this is also a concern for many long-term holders about the 'departure from the original intention.'
Conclusion: A game of 'transformation' and 'growing pains.'
Musk's actions have placed DOGE at a turning point in its fate. It is no longer a mere 'meme coin,' but it has yet to become a mature 'payment currency'; the damage to miners' interests and the divergence of retail investors' beliefs foreshadow that DOGE's 'transformation' journey is destined to be filled with growing pains.
For investors, it is crucial to recognize clearly: the value of DOGE has shifted from 'Musk's endorsement' to 'the ability to implement application scenarios.' Short-term price fluctuations should not become the core of decision-making; for the DOGE ecosystem, how to balance 'practical transformation' with 'miners' interests,' 'centralized efficiency' with 'decentralized original intention' will be key to determining whether it can truly 'transform.' The final result of this game might only be revealed once Tesla and SpaceX's applications are fully implemented.
