The cryptocurrency world was sent into turmoil on May 8, 2025, when Elon Musk, CEO of Tesla, made a highly anticipated appearance on NBC’s Saturday Night Live (SNL) as host. During the show, when directly asked whether Dogecoin was a “hustle,” Musk replied with a deadpan: “Yes, it is.” The comment triggered an immediate and dramatic sell-off, with Dogecoin (DOGE) plunging over 30% within hours. At its lowest point, the drop approached 40%, wiping out billions in market value in a matter of minutes.
This moment encapsulated the volatile relationship between social media influence and digital assets—particularly for meme-based cryptocurrencies like Dogecoin. What had once soared on the back of celebrity endorsements now crashed just as swiftly due to a single joke on live television.
The Rise of Dogecoin: From Meme to Market Giant
Dogecoin began in 2013 as a satirical take on the growing crypto hype, featuring the face of a Shiba Inu dog from a popular internet meme. Initially created as a joke, it gained a loyal online following and gradually evolved into one of the most recognizable digital currencies.
Fast forward to 2025, and Dogecoin had become a legitimate player in the crypto market. With a peak market capitalization exceeding $87 billion, it briefly surpassed well-established companies like FedEx and Snap Inc. in valuation. At one point, it ranked as the fourth-largest cryptocurrency by market cap, trailing only Bitcoin, Ethereum, and Binance Coin.
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This meteoric rise was fueled largely by high-profile supporters, most notably Elon Musk. Over the years, Musk repeatedly referred to himself as the “Dogefather” and tweeted cryptic yet bullish messages about DOGE, often sending prices soaring. His influence was so pronounced that analysts began tracking his social media activity as a leading indicator for Dogecoin’s price movements.
The SNL Effect: When Hype Meets Reality
Musk’s appearance on Saturday Night Live had been widely promoted across social media platforms for weeks. Many investors viewed it as a golden opportunity for mainstream validation of Dogecoin. Anticipation built throughout the day, with traders positioning themselves for a potential surge.
However, the outcome was anything but bullish.
During the skit titled “The Digital Future,” Musk humorously acknowledged Dogecoin's speculative nature. When asked if it was a scam, his blunt answer—“Yes”—landed like a bombshell in crypto circles. While clearly intended as satire, the market reacted with full seriousness.
Within minutes:
- DOGE dropped from around $0.70 to below $0.45
- Trading volumes spiked dramatically
- Billions in notional value evaporated
Even though Musk later clarified that he remained supportive of Dogecoin as “the people’s crypto,” the damage was done. The episode underscored a critical truth: influence cuts both ways. When public figures wield outsized power over asset prices, volatility becomes inevitable.
Why Dogecoin Captured the Public Imagination
Despite its origins as a joke currency, Dogecoin attracted real investment and adoption for several reasons:
- Community-driven ethos: Unlike traditional cryptocurrencies governed by formal development teams or corporate entities, Dogecoin thrives on grassroots enthusiasm.
- Low entry barrier: With prices historically under $1, DOGE appealed to retail investors looking to get involved without large capital outlays.
- Celebrity endorsement: Musk wasn’t alone—billionaire Mark Cuban also expressed bullish sentiments, predicting DOGE could reach $1 and maintain that level.
- Cultural momentum: Memes, tipping culture on social media, and viral trends helped sustain interest far beyond typical crypto cycles.
Still, critics remain vocal. Michael Novogratz of Galaxy Digital warned investors against getting caught up in hype, advising them to sell rather than buy Dogecoin. He emphasized that much of the buying pressure came from younger, less experienced investors drawn more by FOMO than fundamentals.
Market Reaction and Broader Implications
The fallout from Musk’s SNL comment wasn’t limited to Dogecoin alone. Other altcoins experienced ripple effects as traders reevaluated risk across the board. Ethereum briefly dipped below $3,400, while Bitcoin retreated toward the $54,000 mark.
Yet interestingly, some analysts saw this correction as healthy. After months of relentless upward momentum driven by speculation rather than utility, the crash served as a reality check for overleveraged positions.
It also reignited debates about:
- The role of influencers in financial markets
- Regulatory oversight of meme-based digital assets
- Investor education and emotional decision-making
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Frequently Asked Questions (FAQ)
Q: Why did Dogecoin crash after Elon Musk appeared on SNL?
A: Musk’s comment calling Dogecoin a “hustle” during the live broadcast triggered panic selling among retail investors who interpreted it as a rejection of the asset, despite its likely humorous intent.
Q: Is Dogecoin backed by any real technology or use case?
A: While Dogecoin uses blockchain technology and can be used for payments or tipping online, it lacks many advanced features found in newer cryptocurrencies like smart contracts or decentralized applications.
Q: Can Dogecoin recover from this drop?
A: Recovery depends heavily on continued community support and external sentiment. Given its reliance on social momentum, future rallies are possible—but so are further crashes.
Q: Should I invest in Dogecoin in 2025?
A: As with any highly speculative asset, investors should proceed with caution. Only allocate funds you can afford to lose, and do thorough research before entering.
Q: How does Dogecoin compare to Bitcoin or Ethereum?
A: Unlike Bitcoin (a digital gold/store of value) or Ethereum (a platform for dApps and DeFi), Dogecoin functions primarily as a medium of exchange and cultural phenomenon rather than a technological innovation.
Q: Who controls Dogecoin?
A: No single entity controls Dogecoin. It is maintained by an open-source developer community and sustained by user adoption and network activity.
Looking Ahead: Lessons from the DOGE Rollercoaster
The events surrounding Musk’s SNL appearance highlight key themes shaping the future of digital finance:
- Social sentiment drives short-term price action
- Retail participation has never been higher—but neither has risk
- Celebrity influence demands scrutiny
For long-term investors, the takeaway is clear: while meme coins like Dogecoin may offer excitement and rapid gains, they come with extreme volatility and limited intrinsic value.
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As the crypto ecosystem matures, regulatory frameworks will likely tighten around such assets. Until then, investors must balance opportunity with caution—and recognize that even jokes on late-night TV can have serious financial consequences.
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