Has Musk's Influence Worn Off... Dogecoin's 'Endless Decline'

Over 14% Drop in a Week
Altcoins Overlooked Despite Rebound
Recovery Limited Despite Musk's Supportive Remarks

[Asia Economy Reporter Gong Byung-sun] On the 7th, Kim Seohun (26, pseudonym) purchased 2 million won worth of Dogecoin at around 800 won. Until then, he had been reluctant to buy Dogecoin, which was known to have no value, but he believed that Tesla CEO Elon Musk's continuous supportive remarks would drive the price up to 1,000 won. However, since then, the price has continuously fallen, nearly halving. Kim said, "Even adding more in the middle was useless," and complained, "I would sell if it rebounded even a little, but it remains stagnant."

Dogecoin, which was expected to surge all the way to Mars, is endlessly declining. According to the domestic cryptocurrency exchange Upbit, as of 8:30 a.m. on the 28th, Dogecoin recorded 404 won, down about 5.16% compared to the previous day. Looking at a week-long period, the decline reaches 14.44%. After the cryptocurrency market stagnated on the 19th and 23rd, other altcoins like Enjin Coin rebounded, but Dogecoin has not recovered.

At the beginning of this month, Dogecoin was the most notable cryptocurrency. Dogecoin, which was in the 300 won range at the end of last month, surged to an all-time high of 889 won on the 8th. Its market capitalization also increased, rising to 4th place among all cryptocurrencies. It even surpassed the market caps of global automobile company General Motors and pharmaceutical company Moderna.

The background of Dogecoin's rise was Elon Musk CEO's endless support. Since February, Musk has consistently posted Dogecoin-related content on Twitter. Even without explicit mentions, just posting a picture of the Shiba Inu dog, the symbol of Dogecoin, caused extreme volatility.

However, it seems that Musk's words no longer have the same effect. The turning point was after his appearance on the American variety show SNL on the 8th (local time), where he said, "Dogecoin might be a scam." Even when positive news related to actual achievements came out, the price no longer surged. On the 10th, Musk's space exploration company SpaceX announced it would accept Dogecoin as payment for exploration plans. On the 13th, Musk revealed that he had started working with Dogecoin developers to improve transaction efficiency to address environmental issues. Nevertheless, Dogecoin only rose to the 600 won range and did not reach its previous peak.

Accordingly, from the perspective of narrative economics, opinions have emerged that Musk's role as a super-spreader has ended. Narrative economics argues that the economy is driven by narratives, and if the narrative of a particular asset is attractive, it gains popularity like an epidemic led by a super-spreader, but it can suddenly crash. Professor Lee Byung-wook of Seoul School of Integrated Sciences and Technologies explained, "If a new super-spreader to replace Musk, who has already lost trust in the cryptocurrency market, does not appear, cryptocurrencies including Dogecoin could plummet."

This content was produced with the assistance of AI translation services.