Dogecoin is now down more than 90% from its all-time high of $0.73
Dogecoin, the biggest meme cryptocurrency, has plunged 90% from its all-time price peak which was recorded on May 9, the day Elon Musk hosted the US late-night sketch show “Saturday Night Live”.
As reported by U.Today, Dogecoin’s market cap topped $90 billion in the run-up to the much-hyped event, becoming more valuable than General Motors.
Musk’s SNL hosting debut ended up being a “sell the news” event: Dogecoin lost around 40% of its price in just a few hours.
It has not recovered since then despite such famous companies as Gucci and Tesla moving to accept the world’s most famous Bitcoin parody.
Earlier today, Dogecoin added a zero to its price, falling to $0.07 in another major cryptocurrency market sell-off triggered by the ongoing Terra implosion.
At press time, the meme coin is changing hands at $0.0921 on the Binance exchange after recovering more than 29% from recent lows.
Despite its dismal performance in 2022, Dogecoin has not lost its relevance. In fact, the cryptocurrency joke has re-emerged among the top 10 cryptocurrencies by market cap amid the recent selloff. Dogecoin is currently valued at $12 billion, making it larger than well-known companies such as Zillow and ASUS.
Lawrence McDonald, former head of macro strategy at French banking giant Societe Generale Group, has concluded that Dogecoin’s rise was simply driven by excess Federal Reserve liquidity.
The Fed is expected to raise the short-term interest rate to 3%, putting more pressure on risky assets. The higher than expected inflation data, which was announced earlier in the day, will further encourage the central bank to continue its hawkish monetary policy.