On November 13, U.S. President-elect Donald Trump announced the establishment of the Department of Government Efficiency (DOGE) and appointed Tesla CEO Elon Musk along with Strive Enterprises co-founder Vivek Ramaswamy as co-leaders of this new department. The news created a significant stir in the financial community and pushed the cryptocurrency Dogecoin (DOGE) to spike, with a nearly 20% increase within just 24 hours.
The Department of Government Efficiency, abbreviated as DOGE, coincidentally shares its acronym with Dogecoin—a popular memecoin featuring a Shiba Inu dog logo that has garnered substantial attention in the crypto community. Trump stated that the department’s main goals would be to reduce redundant regulations, cut wasteful spending, and restructure federal agencies to enhance government efficiency. He emphasized that, under the leadership of Musk and Ramaswamy, the administration would adopt a “startup approach” to simplify government processes.
Immediately following Musk’s appointment as co-leader of DOGE, the price of Dogecoin surged nearly 20%. This cryptocurrency has now risen 153% since Election Day, far surpassing Bitcoin’s 30% gain during the same period. This week, Dogecoin even surpassed XRP to become the sixth-largest cryptocurrency by market capitalization, reaching approximately $60 billion.
This is not the first time Musk has impacted Dogecoin; he has repeatedly influenced its price through his statements on social media. The memecoin community and crypto investors have even dubbed him the “Dogefather” for his pivotal role in popularizing Dogecoin back in 2021.
Beyond Dogecoin, several other memecoins have also benefited from Trump’s DOGE plan. A version of the memecoin DOGE on the Solana platform surged by 100% following Trump’s announcement. This plan has not only sparked renewed investment interest in Dogecoin but also generated growth momentum across the broader memecoin market, underscoring the increasing influence of political events on cryptocurrency trends.
The idea for the Department of Government Efficiency (DOGE) originated from Musk’s proposal in September of this year. By November, Musk had officially joined Trump’s re-election campaign efforts, contributing $130 million and making appearances at Trump’s rallies. Musk’s close ties to the president-elect secured his role in leading the department, and his outspoken support for Dogecoin has further fueled investor enthusiasm for this cryptocurrency.
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