Dogecoin has plunged more than 70% since Elon Musk's May SNL performance, shedding $70bn in market cap

Business Insider US
Elon Musk hosted the May 8, 2021 episode of 'Saturday Night Live'.
Will Heath/NBC via Getty Images
  • Dogecoin has dropped more than 70% since the hype peaked around the token when Elon Musk appeared on SNL in May.
  • It was the worst-performing major cryptocurrency on Tuesday, as investors fled the asset.
  • Cryptocurrencies have crashed since May after Musk criticised bitcoin and China cracked down.
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Dogecoin continued to plunge on Tuesday as cryptocurrencies tumbled in the wake of a fresh crackdown by Chinese authorities.

The meme cryptocurrency lost 20% over 24 hours to hit $0.19431 R2,7), according to CoinGecko. That was around 74% lower than its record high of more than $0.70 (R9.8), reached in May amid expectations that Elon Musk would use his "Saturday Night Live" performance to pump the token.

The dogecoin market was worth around $94 billion (R1,339,603,819,296) at its peak, but had dropped to roughly $25 billion (R356,277,611,515) on Tuesday, according to CoinGecko - a $69 billion (R983,326,207,781) loss.

Dogecoin suffered the heaviest losses of any major cryptocurrency on Tuesday. Yet others didn't fare much better, with binance coin and cardano off by around 12%. Bitcoin and ether, the two biggest cryptocurrencies, dropped but less sharply.

Cryptocurrencies have fallen dramatically since May after Elon Musk halted payments for Tesla in bitcoin, citing its "insane" energy use, and China started cracking down on crypto "mining."

Yet dogecoin has been hit particularly hard, with the token plummeting back to earth after skyrocketing in the spring.

Analysts have long warned that dogecoin is a case of speculative mania, with the price influenced more by celebrity-induced buzz than anything fundamental.

Musk was one of the main drivers of the rally in dogecoin. But he hasn't said anything about doge in a while, and let fans down when he called it a hustle on SNL.

"Many expected Elon Musk's SNL appearance to send the already-soaring dogecoin even higher," Michael Kamerman, CEO of crypto firm Skilling, said. "It had the opposite effect."

"Combined with China's crackdown on cryptocurrency, the ripple effects are being felt by all digital currencies." He added: "Whether or not it goes up or down from here is anyone's guess."

Nonetheless, dogecoin remained more than 7,000% higher for the last year on Tuesday, according to CoinGecko.

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