Dogecoin (DOGE) surged to a seven-month high of $0.21 on U.S. Election Day, marking a significant rally fueled by a combination of Elon Musk’s playful tweets and public appearances with former President Donald Trump. The meme coin, which has become one of the most recognized cryptocurrencies, saw a massive 30% jump in the last 24 hours and a 20.6% rise over the past week, according to CoinGecko data. DOGE's rapid price increase allowed it to surpass Ripple (XRP) in market capitalization, securing the 7th spot with a market cap of $30 billion.
While still below its all-time high of $0.73 set in May 2021, DOGE’s sharp increase on Election Day shows the enduring appeal of the cryptocurrency. Initially created in 2013 as a parody of Bitcoin, Dogecoin has managed to build a large, devoted following, partly due to internet culture and the influence of high-profile supporters like Musk. On Election Day, the rally highlighted how Dogecoin continues to be shaped by the whims of social media and the broader crypto market.
The spike in DOGE's price also comes amid broader optimism in the crypto space. Bitcoin (BTC), the bellwether cryptocurrency, hit an all-time high of $74,504, driven by growing demand for Bitcoin ETFs and the general bullish sentiment surrounding a potential Trump victory. According to Josh Gilbert, market analyst at eToro, “Although Bitcoin is sitting at record highs, it feels like this rally could just be getting started. This bull market has a lot of weight behind it, and that could keep driving the asset higher.”
With Bitcoin continuing to rise, there’s hope that altcoins like Dogecoin will benefit from the broader upward momentum. Historically, when Bitcoin rises, altcoins tend to follow suit, and the current rally has fueled speculation that DOGE could see more gains in the future.
The lead-up to the U.S. presidential election saw a perfect storm of excitement for Dogecoin, with both Musk and Trump playing key roles in the hype surrounding the coin. In the days leading up to the election, Musk and Trump teased the idea of creating a "Department of Government Efficiency" (D.O.G.E.), which ignited a flurry of enthusiasm among Dogecoin fans. Musk's tweets, which playfully referenced the concept of the "D.O.G.E." agency, coupled with Trump’s pro-crypto stance, sent the price of DOGE into a sharp rally.
Many in the crypto community see Trump as a pro-crypto advocate. Unlike Vice President Kamala Harris, who has been relatively quiet about crypto policies, Trump has long positioned himself as a friend to the crypto community. This has led to speculation that if he returns to office, his policies could be more favorable for the crypto market, which has further fueled the current DOGE rally.
This phenomenon has led analysts to dub the current rally the “Trump trade,” as investors anticipate that Trump’s policies could provide a significant boost to the crypto industry. The idea of a “D.O.G.E.” agency led by Musk, who helped propel DOGE to its all-time high in 2021 through a series of tweets, only added more fuel to the fire. Musk has recently downplayed his involvement in crypto, but the suggestion that he could help lead the “D.O.G.E.” agency if Trump wins has created additional speculation about the future of Dogecoin.
Dogecoin’s rise has been inextricably linked to the influence of internet culture, where memes and viral trends often carry more weight than fundamentals. Elon Musk’s involvement with DOGE, in particular, has been one of the driving forces behind its growth. Musk's early tweets in 2021, including his references to DOGE as the "people's crypto" and his public support for the coin, sent its value skyrocketing, leading many to view Musk as a de facto leader of the Dogecoin movement.
Although Musk has made a point of downplaying his involvement in cryptocurrency in recent months, his continued playful engagement with Dogecoin fans—such as suggesting the creation of a “D.O.G.E.” agency—has kept the community engaged and speculative about his future involvement with the meme coin. The idea of Musk as a leader of a Dogecoin-centric governmental agency only adds to the growing mythos of DOGE and keeps the community eager for more developments.
Despite its volatility, Dogecoin has proven to be one of the most resilient and recognizable cryptocurrencies, thanks in large part to its dedicated fanbase and viral, meme-driven nature. Even with significant price fluctuations, including its fall from the May 2021 all-time high, DOGE has consistently rallied on the back of major news events, tweets from Musk, and moments of collective excitement in the crypto space.
As the 2024 U.S. election cycle unfolds, the intersection of politics and cryptocurrency could continue to fuel the Dogecoin rally, particularly if Musk and Trump continue to play prominent roles in the meme coin's narrative. The growing optimism for a Trump-led pro-crypto administration, paired with Musk's continuous playful support for DOGE, makes it clear that the coin’s appeal is not waning.
Dogecoin’s Election Day surge reflects the lasting appeal and volatile nature of the meme coin. As the U.S. election plays out and the crypto market remains in a bullish mood, Dogecoin could see continued gains, particularly if Bitcoin’s rally persists and the influence of figures like Musk and Trump continues to shape sentiment.
Although DOGE is still far from its all-time high, the recent surge underscores its staying power in the cryptocurrency world. Whether or not the hype surrounding the "D.O.G.E." agency and Trump’s potential crypto-friendly policies will propel DOGE to new heights remains to be seen. However, one thing is clear: Dogecoin remains a force to be reckoned with in the crypto landscape.
November 2024, Cryptoniteuae