Dogecoin has jumped over 10% to $0.3869 during the early trading hours in Asia this Wednesday after the comments from U.S. President-elect Donald Trump. In this announcement, Trump announced that Elon Musk, Tesla CEO and former Republican presidential candidate Vivek Ramaswamy are going to head the newly established department. He mentioned that both would pave the way for their administration to dismantle Government bureaucracy, cut all wasteful expenditures, slash excess regulations, and restructure Federal Agencies.
Dogecoin saw a significant increase of nearly 20% before its gains diminished and it has been among the top performers in the rally after the election which experienced a 153% rise since the day of the election. This increase was in contrast to the 30% rise in bitcoin during the same week. It also took over XRP to become the sixth-largest cryptocurrency by market capitalization.
Memecoins can also be seen as the indicator of retail interest and risk tolerance in the crypto market when activity surrounding meme coins becomes intense, it typically indicates that retail investors are interested in speculating more boldly on assets of higher risk.
The concept of an efficiency commission was introduced by Trump in September. Since then, Elon Musk who has been referring to himself as ‘Dogefather’ and is also infamous for making public statements about meme coins that impact their value, has talked about the same on his social media platform X, calling the commission the ‘Department of Government Efficiency’ or D.O.G.E.
Elon Musk’s endorsement and persistent buzz on social media helped Dogecoin gain significance in 2021, which has since then acted as a major driving force for the coin. According to Coin Metrics, in the same year in May, Elon Musk through his social media posts contributed to the rise of Dogecoin to its peak price of 67 cents.
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