Recently, Dogecoin (DOGE) experienced a significant price surge, rising nearly 20% following the announcement by U.S. President-elect Donald Trump about the establishment of a new Government Efficiency Department, dubbed "DOGE". This department will be led by Tesla CEO Elon Musk (TSLA, Financial) and Vivek Ramaswamy, co-founder of Strive Asset Management. The primary goal of this department is to dismantle government bureaucracy, cut redundant regulations, reduce wasteful spending, and reorganize federal agencies.
Since the election, Dogecoin has been one of the biggest gainers, with its value increasing by 153%, compared to Bitcoin's 30% increase during the same period. Dogecoin also surpassed XRP to become the sixth-largest cryptocurrency by market capitalization.
As a meme coin, Dogecoin is known for its volatility, often reflecting retail investors' interest and risk appetite in the cryptocurrency market. The increased activity in meme coins suggests a growing interest in speculative investments among retail traders.
The concept of a Government Efficiency Department was initially proposed by Trump in September. Elon Musk, who has previously referred to himself as the "Dogefather", has been actively promoting the idea on his social media platform, X. His influence has historically played a significant role in driving Dogecoin's popularity and price movements.
In 2021, Musk’s social media posts were a key catalyst for Dogecoin, propelling its price to an all-time high of 67 cents per coin. However, despite significant hype, the coin experienced a sharp decline post his Saturday Night Live appearance where he humorously referred to it as "a hustle".
While Dogecoin has been on the rise, other parts of the cryptocurrency market, like Bitcoin, have remained steady post-election, with Bitcoin trading around $87,000 after previously reaching as high as $90,000.
