Dogecoin rose Tuesday evening, extending its post-election surge after President-elect Donald Trump officially announced the creation of the Department of Government Effectivenesswhich he referred to as “DOGE” in his statement.
CEO of Tesla Elon Musk and Vivek Ramaswamy, a former Republican presidential candidate and co-founder of Strive Asset Management, will lead the department, Trump said in a statement. Together, they “will pave the way for my administration to dismantle government bureaucracy, reduce excessive regulations, cut wasteful spending, and restructure federal agencies.”
Dogecoin rose almost 20%, before paring its gains. He has been one of the biggest gainers in the post-election rally, gaining 153% since Election Day compared to Bitcoin Increase of 30% over the same period. He also passed in front XRP this week to become the sixth largest cryptocurrency by market capitalization.
Dogecoin surged after President-elect Donald Trump announced the creation of the Department of Government Effectiveness, or “DOGE.”
Memecoins are considered an indicator of retail interest and risk appetite in crypto. When memecoin activity accelerates, it generally indicates that retail investors are participating and eager to speculate more on the risk curve.
Trump at the start launched the idea of a efficiency commission in September. Since then, Musk – who has dubbed himself the “Dogefather” in the past and is known for making public comments about memecoin that influence its price – has posted on his social media platformdesignating the commission as the “Department of Government Effectiveness” or “DOGE”
Dogecoin gained relevance in 2021 following Musk’s endorsement and continued hype on social media, which has since become a big catalyst for the coin. In May of that year, Musk’s posts fueled dogecoin’s rally to its all-time high of 67 cents, according to Coin Metrics. Although his appearance at the time on “Saturday Night Live,” in which he called dogecoin “a scam,” dropped its price.
The rest of the crypto market was on pause after its post-election rally. Bitcoin was trading flat at around $87,000, after briefly touching $90,000 late in the afternoon. Crypto Stocks Coinbase And MicroStrategy were 1% and 2% lower, respectively, during extended exchanges.