Despite seeing a tremendous increase in value since its inception, Dogecoin saw a sudden drop in value this past weekend, despite considerable confidence in its performance from supporters.
The -5.8% change in valuation followed the appearance of Elon Musk, Dogecoin’s most prominent champion, on the U.S. comedy show Saturday Night Live.
Musk’s actions have historically had a great deal of impact on Dogecoin’s increase in value, with single tweets encouraging many to buy up the currency en-masse. Musk’s appearance on SNL was expected to have a similar effect, with supporters purchasing more dogecoin in anticipation, only to be met with a disappointing dip.
By Sunday, 9.am. ET, dogecoin had dropped to 0.56 USD, undoing all of the previous week’s gains.
Due to Dogecoin not having a finite number of coins, it’s often referred to as an ‘inflationcoin’ or ‘memecoin’, the latter term referring to its value being mostly affected by memes generated and shared by public figures.
Although holders still remain confident that the coin will breach the 1.00 USD mark, there’s little if no evidence that this will happen, with the current trajectory taking a somewhat chaotic path.
Fortunately, there are safer coins to make long-term investments in, one of them being Dagcoin, which has steady and consistent growth in value over the past 2 years.