Elon Musk to host Saturday Night Live in less than 48 hours – what will happen to Dogecoin’s price?
Musk's SNL appearance set to take Dogecoin mainstream or could it be another flop?
One of the strongest, and most surprising, movers in the cryptocurrency markets from the start of 2021 has been Dogecoin. The meme-based cryptocurrency has soared to over AUD $0.80 from starting the year at a meager AUD $0.0050. Enthusiasm for the token has caught many cryptocurrency investors completely off-guard due to the token's lack of clear utility and questionable origin. However, the honeymoon period could be set to continue for this quirky digital asset.
Dogecoin has amassed several celebrity fans over the past few years including Snoop Dog, Gene Simmons, several Tik Tok, and YouTube stars, however, the most influential has undoubtedly been Elon Musk, the CEO of Tesla. Musk's love affair with Dogecoin started back in September 2018. Since then he has openly backed the cryptocurrency token on Twitter, stating in one tweet that it would be comical if it became the 'currency of the earth'. Many tweets have resulted in significant spikes in price.
However, this weekend, Musk really does hold the potential to light the match for Dogecoin's thruster rockets. The entrepreneur is set to present Saturday Night Live (SNL), a US comedy sketch and variety show. Normally, the appearance of Musk on the Saturday night show would not directly cause excitement for Dogecoin fans, but in the tweet announcing his appearance on the show he referred to himself as the 'Dogefather'.
With the power of a single Tweet clear to see, a mention of Dogecoin on mainstream TV could propel the price of the digital asset to even greater heights. Musk would hold captive an audience that would not necessarily be familiar with the meme-based cryptocurrency, which could catalyse a new wave of Dogecoin investment. 4.1% of Americans aged between 18-49 tune in to the show.
Dogecoin's journey to $1
The meme-based cryptocurrency was started in 2013 by two engineers as a side project. After joining forces on Reddit back in 2013, the creators used a derivation of the open-source Litecoin code to create a cryptocurrency for the masses. The meme-based Dogecoin was born. Apart from making a few alterations to transaction speeds and creating an unlimited supply of tokens, little else was changed. Unexpectant of the rise to come, the two creators left the project in 2015.
The token was never intended to last. However, whether due to its affiliation with the Shiba Inu dog meme 'Doge', or particularly tight-knit fan base, Dogecoin has outlasted many other altcoins projects. Still offering a transactional utility, the token is used by many to transfer funds. With bullish encouragement over the last 12 months, the total value of the coin is now just over AUD $100 billion. Not bad for a 'joke' coin with a volunteer development team and no clear direction.
For many Dogecoin enthusiasts, the price target of $1 has been the goal for a long time. Many believe that if Musk comments on Dogecoin this weekend, it could be enough to reach the target. However, other cryptocurrency investors believe that Musk's appearance is already factored into the price. After announcing his presenting role on SNL the price of Dogecoin spiked to new all-time highs of $0.69. The market may have already 'factored in' any announcements to come this weekend.
The $1 price prediction is hard to fathom for many due to the market cap required for prices to reach that point - especially with an unlimited supply of tokens. Bitcoin, argued as one of the greatest innovations of the last decade and kickstarting an entirely new industry, will only ever have a maximum of 21 million tokens in circulation. On the other hand, Dogecoin is a digital asset that has a picture of a dog on it. Only if the Dogecoin community decides to change the coin's tokenomics could Dogecoin sustain substantial long-term value.
Lacklustre attempts to push the price of Dogecoin higher have set a precedent. The unenthused 'Dogeday' that took place 20th April 2021 left onlookers a little underwhelmed. Although the day had been marked as a potential catalyst for new all-time highs, prices actually flopped. This year has shown that nothing should be ruled out, but could Musk's TV appearance this weekend result in something similar? Or will mainstream TV introduce Dogecoin to a whole new market audience?
The show is set to air at 11:30 pm EST.
Disclosure: The author owns a range of cryptocurrencies at the time of writing