Dogecoin (DOGE) has made a remarkable leap in the crypto market, officially surpassing USDC to join the ranks of the six largest cryptocurrencies by market cap, now reaching a valuation of $41 billion.
This is the first time in history that DOGE has taken the top spot among memecoins, vastly outpacing its longtime rival, Shiba Inu (SHIB), with more than three times the market cap, creating a gap of nearly $27 billion.
DOGE has experienced a powerful price surge, climbing from $0.11 to $0.3 within just one month, due to two main factors: the “Elon Musk effect” and attention from the Trump administration. The announcement that newly elected President Trump will establish the Department of Government Efficiency, abbreviated as “D.O.G.E.,” sparked quick reactions from investors, who believe this will further draw attention to Dogecoin. Musk’s remarks about DOGE have been especially influential, pushing DOGE’s price up by 22.2% in just 24 hours, now hovering around $0.28.
According to BBC, President Trump plans to appoint Elon Musk to head this new department, a move expected to foster a more crypto-friendly policy environment. As a result, DOGE has become a focal point for investors and media alike, solidifying its position in the cryptocurrency market.
The overall crypto market has also seen a boom following the U.S. presidential election. Bitcoin (BTC) reached a new record high, breaking the $81,000 mark over the weekend and is now trading at around $81,100. Market participants anticipate more “relaxed” economic policies, especially as the U.S. Federal Reserve (Fed) unexpectedly cut interest rates, further boosting the crypto market and inspiring confidence in a promising future.
DOGE’s momentum has also fueled the growth of other memecoins. Shiba Inu (SHIB) saw a 30% increase in the past week, while Floki Inu (FLOKI) rose over 32%, reaching a market cap of $1.6 billion. Both benefited from the perceived partnership between Elon Musk and the Trump administration.
Additionally, a memecoin parody called “D.O.G.E” on the Ethereum network has increased by over 600% since early October. Although this coin’s market cap is only $145 million, its notable growth shows DOGE’s strong appeal in the eyes of users and investors.
An analysis of DOGE’s price chart shows that the current price surge resembles the pattern from late 2020, when DOGE skyrocketed by 1,500% and peaked at $0.73 in May 2021. DOGE’s 50-week moving average is on track to cross above its 100-week moving average, a technical signal indicating that DOGE may continue its upward trend in the coming weeks. If history repeats itself, DOGE may even approach its previous peak of $0.73 from 2021.
Despite the impressive momentum of DOGE and other memecoins, investors should note that memecoins tend to be highly volatile and prone to sudden reversals. Therefore, closely monitoring positions and employing risk management tools, such as stop-loss strategies, is essential to mitigate potential risks.
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