Dogecoin, perhaps the most volatile of all cryptocurrencies — its value is, after all, largely reliant on Shiba Inu memes and Elon Musk tweets — saw its market cap fall on Tuesday, April 21, after hitting a record high fueled by hashtags on social media, a Reuters report reads.
Dogecoin ultimately fell 15.4 percent to US$0.33 during a session that also saw it hit a record high in which its market capitalization soared over the $50 billion mark. According to coinmarketcap.com, the subsequent slump saw the cryptocurrency's market cap drop roughly $45 billion.
As a point of reference, Bitcoin has a market cap of over $1 trillion thanks in part to a recent $1.5 billion investment from electric automaker Tesla.
Social media platforms saw hashtags #DogeDay and #DogeDay420 trending — the latter a reference to the day of April 20, celebrated in cannabis culture due to the fact that the numbers align with the slang "420," signifying marijuana.
Wow. Such rise.
Dogecoin was launched in 2013 and was originally intended as a satirical critique of the cryptocurrency craze at the time.
Since that time, its inventors, software engineers Billy Markus and Jackson Palmer, distanced themselves from the project and a Reddit subculture helped to keep the cryptocurrency alive, despite a lack of support when compared to Bitcoin and Ethereum — both have large teams working behind the scenes.
In February, Dogecoin's price soared over 60 percent following a tweet by Tesla and SpaceX CEO Elon Musk — reports have since emerged that he may be under scrutiny, once again, from the SEC due to his tweets.
On the actual moon— Elon Musk (@elonmusk) February 24, 2021
As per Reuters, Dogecoin has seen an 8,000 percent increase this year, making it the sixth-largest coin in the volatile cryptocurrency space.
The cryptocurrency was also boosted by the recent retail investment trend started by WallStreetBets' Reddit-fueled GameStop short squeeze. Retail investors largely converge on online forum platform Reddit, in which memes are a ubiquitous form of communication.
Perhaps only the words of Shiba Inu can truly encapsulate the bizarre recent turn of meme-inspired events: Wow. Much coin.