On Tuesday night, Dogecoin experienced a sudden surge of nearly 20% after President-elect Donald Trump announced the creation of a new Department of Government Efficiency, abbreviated as “DOGE.” This announcement, which stirred excitement among Dogecoin enthusiasts, named Tesla CEO Elon Musk and Vivek Ramaswamy, co-founder of Strive Asset Management, as leaders of the department. According to Trump’s statement, Musk and Ramaswamy will work to streamline government operations by reducing bureaucracy, slashing excess regulations, cutting wasteful spending, and reorganizing federal agencies.
Following the announcement, Dogecoin saw a spike in its value, briefly reaching around $0.43 before stabilizing at approximately $0.37 by 2 a.m. ET. The cryptocurrency has gained momentum since Election Day, with an impressive 153% rise, far outpacing Bitcoin’s 30% growth in the same period. Dogecoin’s surge even allowed it to surpass XRP in market capitalization, becoming the sixth-largest cryptocurrency.
Often considered a barometer of retail investor interest, memecoins like Dogecoin typically attract attention when market sentiment leans toward higher-risk speculation. Analysts see this recent activity as an indicator of rising retail enthusiasm in the cryptocurrency market.
Trump first introduced the idea of a government efficiency commission in September, and Musk, who has a history of influencing Dogecoin’s price through his social media posts, began referencing the proposed “Department of Government Efficiency” on X, his social platform. Known for dubbing himself the “Dogefather,” Musk’s association with Dogecoin dates back to 2021, when his enthusiastic tweets propelled Dogecoin to its peak value of $0.67. However, his appearance on Saturday Night Live that year, where he jokingly referred to Dogecoin as “a hustle,” resulted in a swift decline in its value.
While Dogecoin soared, other parts of the crypto market remained relatively calm. Bitcoin traded flat at around $87,000 after briefly reaching $90,000 earlier in the day. Meanwhile, crypto-related stocks, including Coinbase and MicroStrategy, fell slightly, with declines of 1% and 2%, respectively, during extended trading.