After the Dogecoin price soared with its market capitalization skyrocketing to more than $50 billion, it went down by 20 percent on Tuesday, Bloomberg reported.
Dogecoin market capitalization dropped to around $40 billion after an all-time high fueled by hashtags from the supporters of the cryptocurrency, which was previously looked down upon as a mere memecoin.
Despite the decline, Dogecoin's market cap is now bigger than those of long-time companies, such as automaker Ford and food manufacturer Kraft Heinz.
Hashtags #DogeDay and #DogeDay420 trended on social media channels, such as Discord, Reddit, TikTok and Twitter as fans used them in their posts coinciding with the unofficial April 20 holiday.
The Doge Day campaign was aimed to push dogecoin stock price to $1 on trading platforms. Dogecoin's value hit a record high $0.42 cents with its market cap ballooning to half of Bitcoin's $1 trillion.
Dogecoin started as a joke in response to the popularity and rising value of Bitcoin in 2013. Dogecoin price grew by over 400 percent over the past week and more than 8,000 percent for the year, turning many investors into overnight millionaires, as per MarketWatch's report.
Dogecoin also gained popularity among online communities with its use of a meme showing an image of a Shiba Inu dog called "doge," hence the name Dogecoin and DOGE code on trading platforms.
Elon Musk, Other Celebrities Rally Behind Dogecoin
Social media platforms, such as Twitter, have been instrumental in promoting the popularity and pushing the price of Dogecoin and other cryptocurrencies like Bitcoin, Ethereum and Ripple.
Tesla founder Elon Musk, a well-known Dogecoin fan, previously tweeted "Doge Barking at the moon" in favor of the digital token, sharing an image of a painting titled "Dog Barking at the Moon" by Spanish artist Joan Miro.
With a clout of more than 50 million followers on Twitter, Musk contributed to the rise of Dogecoin price with his recent and past tweets favoring the digital currency.
Earlier this year, the Tesla CEO called Dogecoin in a tweet as people's crypto.
Dogecoin is the people’s crypto— Elon Musk (@elonmusk) February 4, 2021
On Valentine's Day, February 14 this year, the tech billionaire explicitly expressed his support for Dogecoin with a tweet encouraging major crypto holders to sell their digital tokens.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.— Elon Musk (@elonmusk) February 14, 2021
Apart from Musk, other celebrities and popular personalities have been urging people to invest in Dogecoin through tweets. Gene Simmons, Mark Cuban, Snoop Dogg and the rock band Kiss are among the personalities who sided with the Tesla CEO to support Dogecoin, as MarketWatch reported.
Interestingly, Musk seemingly has a divided opinion toward Bitcoin. In December, he described Bitcoin is as bad as fiat money, though he also tweeted that Tesla cars can now be bought using bitcoins in March.
Bitcoin, like Dogecoin and other digital currencies, has been experiencing a tremendous growth recently. Bitcoin price hit a record high of more than $64,000 last week, but it declined by around $52,000 during the weekend.
Despite the drop, Bitcoin remains 91.39 percent up for the year, Newsweek reported. Bitcoin price is pegged at around $56,000 at the moment.