Market Analysis
‘Say something, Elon Musk!’ Dogecoin sheds $70B in market cap since SNL
Dogecoin (DOGE), Elon Musk’s pet favourite cryptocurrency, has shed tens of billions of {dollars} in worth since he publicly plugged it on mainstream TV.
As sources famous this week, the meme-based altcoin’s market cap is now $69 billion down versus the place it was when the Tesla and SpaceX CEO hosted Saturday Evening Dwell.
Dogecoin: 6 weeks, 70% losses
Dogecoin noticed a serious rally in early Could, and its top had a market cap of $95 billion.
When Musk took to the airwaves on Could 8, opposite to expectations, DOGE/USD then started a precipitous fall which continues to this present day.
On the time of writing, Dogecoin’s market cap is simply $26.5 billion — 72% decrease. It trades at $0.20, a far cry from its $0.73 all-time highs.
DOGE/USD 1-day candle chart (Bittrex). Supply: TradingView
Itself began as a joke, Dogecoin can discipline little real criticism of its rise and fall, this being down solely to viral promotion exercise by the likes of Musk and others.
Musk himself has sparked a serious backlash, nonetheless, as many argue that those that purchased DOGE based mostly on his efforts have misplaced cash — one thing which for them could have vital penalties.
Others proceed to joke in regards to the extent of the market’s general losses in a matter of weeks.
“Say something, Elon Musk. SAY SOMETHING,” former Bitrefill government John Carvalho joked.
Final week, one analyst warned that Dogecoin might shed one other 60% in value on prime of current losses.
Has the canine had its day?
The Bitcoin (BTC) value retracement has been robust on altcoins extra broadly.
Whereas some have bucked the pattern, many of the large-cap tokens have shed vital worth versus their latest highs.
DeFi cash, knowledge exhibits this week, are principally 75% decrease versus their very own peaks.
As merchants notice, nonetheless, alts stay in a distinct zone to the place they had been even final yr. Dogecoin, for instance, traded at simply $0.002 in June 2020.
“A variety of altcoins have dropped 50%-70% however are nonetheless up like 2000% from lower than a yr in the past,” common buying and selling account Squeeze summarized this week.
“Simply do not forget that there is not any backside in the case of altcoins.”
Bitcoin has managed to claw again a few of its market cap share from altcoins over the previous few weeks reaching above 47%.
Bitcoin market cap dominance chart. Supply: TradingView
