The tenth-largest cryptocurrency in the world, with a market value of slightly under $8 Billion, started off as a joke in 2013. A reference to the “doge” meme that was popular at the time. Dogecoin, which was invented to mock the abundance of altcoins (non-mainstream cryptocurrencies known to grow dramatically in value), is widely regarded as the first “meme coin”. However, it is no longer a joke, as the coin also developed a dedicated community during this time, known as the “Dogecoin Army,” whose declared objective was to raise the coin’s value “beyond the moon” – or above $1.
Effect of Musk’s SNL monologue on Dogecoin
Dogecoin had an amazing year in 2021, despite the fact that cryptocurrencies were usually unpredictable. Since January 2021, it has increased by more than 12,000%. The most vocal and well-known backer of Dogecoin has been Elon Musk. His frequent tweets about the cryptocurrency to his 100+ Million followers can cause Dogecoin’s price to soar. Just like in April when Musk uploaded a painting by Spanish artist Joan with the title “Dog Barking at the Moon” alongside a caption reading “Doge Barking at the Moon”.
Doge Barking at the Moon pic.twitter.com/QFB81D7zOL
— Elon Musk (@elonmusk) April 15, 2021
Dogecoin has crashed by almost 80% following the appearance of Elon Musk on Saturday Night Live(SNL) on May 8, 2021.
In anticipation of Musk’s participation on Saturday Night Live, both Dogecoin and Tesla had been trading higher. The Dogecoin’s fanatical fan base believed that Elon Musk’s imminent appearance on “Saturday Night Live” would send the coin’s value “over the moon” in May when its price was close to reaching an All-Time High of $0.72. But as the program aired, the coin’s value started to decline in real time, losing more than 20% of its value in just one hour.
After the Tesla CEO’s SNL monologue, Maye Musk, his mother, made an appearance to inquire about the Mother’s Day gift he had given her. She stated, “I’m looking forward to my Mother’s Day gift. I sincerely hope it’s not Dogecoin!”.
In response, Elon Musk answered in the affirmative. “It certainly is.”
During the SNL weekend update, Musk played a character who tried to describe Dogecoin before finally admitting it was just “a hustle.” Investors may have wanted Musk to make a more positive statement on the cryptocurrency, but their expectations weren’t met.
Immediately after Musk mentioned it on the show, investors began selling off the coin, depressing the cryptocurrency’s value sharply after it had risen in the run-up to Musk’s SNL appearance.
Trading as low as 44 cents in the same week, Dogecoin was down 40%. Prior to Saturday Night Live’s (SNL) 11:30 p.m. ET broadcast, the cryptocurrency was trading for about 66 cents, down from its opening price of around 70 cents. Due to the high volume of trading in Dogecoin, exchange platforms informed customers early on Sunday morning that they were experiencing difficulties processing cryptocurrency trades and were working to find a solution.
Musk’s initiative to keep Dogecoin afloat
Despite the fact that Musk has continued to subtly tease the adoption of Dogecoin by significant businesses under his control, the coin is continuously declining. Musk has made numerous attempts to rekindle investor interest in Dogecoin, but traders have begun to disregard his well-known affiliation with the cryptocurrency.
Dogecoin steadied last fall at about $0.25 following a summer of significant losses. Since then, its value has been continuously declining. During the past month, it has dropped below $0.10.
Recently, Musk declared that SpaceX would soon take Dogecoin as payment for goods, just like Tesla. Additionally, he has mentioned the possibility of integrating Dogecoin as a payment option on Twitter once he has owned the platform. Both announcements caused brief price increases for Dogecoin, although they were ultimately temporary.
Tesla merch can be bought with Doge, soon SpaceX merch too
— Elon Musk (@elonmusk) May 27, 2022
Despite Elon Musk’s obvious attempts to restart the upward boom, the DOGE price still has further room to fall as the Federal Reserve’s consecutive interest rate hike seems to have caused a decline in cryptocurrencies.
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