Dogecoin has enjoyed a significant upsurge over the last week, fueled by the outcome of the recently concluded U.S. presidential elections. The leading memecoin has skyrocketed by over 120% in the last seven days, igniting optimism and hope for an even upward trajectory toward its all-time high of $0.7.
Meanwhile, the upsurge in DOGE’s value is not isolated. The entire crypto market benefited from this development. Earlier today, the total market valuation surpassed $3 trillion for the first time since cryptocurrencies went mainstream.
While investors are excited about DOGE’s price movement, concern about its possibility of attracting institutional investors has been raised. Dogecoin is a speculative asset with no real-world utility. Just like other memecoins, it was created out of a joke but somehow found its way to the heart of investors, positioning it as one of the largest cryptocurrencies by market cap.
Julien Auchecorne, the head of Auros Ventures, said in a statement that the current market rally appears to be sustainable since the incoming government administration would be highly favorable to the crypto industry.
Elon Musk’s D.O.G.E Proposal Fuels Rally
Tesla and X CEO, Elon Musk, has been known to be a staunch supporter of cryptocurrencies, particularly Dogecoin. Any comment from him that directly or indirectly links to DOGE fuels a significant upsurge.
Before the election, Musk proposed a “Department of Government Efficiency” (D.O.G.E.) if he is appointed by Trump when he takes office. Musk disclosed that the goal of the initiative is to cut $2 trillion or more from the federal budget.
The approval of the acronym D.O.G.E, which is in direct resemblance to DOGE, created a frenzy in the Dogecoin market, igniting a bullish momentum that would send the price of the coin to new heights.
Musk said in a statement, “The structure of altcoin launches is under pressure, especially as institutional incentives still heavily favor de-risking at launch and redirecting capital afterward.”
He added that protocols are now adjusting their strategies to retain participation from institutions after launch.
A New “Microstrategy of Dogecoin” Emerges
Meanwhile, Dogecoin has attracted the attention of a notable blockchain firm. Spirit Blockchain Capital, a Canada-based company has disclosed its plans to accumulate Doegcoin, imitating Microstrategy’s Bitcoin acquisition strategy.
Spirit’s strategy aims to institutionalize Dogecoin’s use case beyond its meme origins by introducing exchange-traded products (ETPs) and payment gateways.
“We are going to hold a significant balance sheet of Dogecoin over the coming months and coming years,” … “we also want to build out the ecosystem. We want to institutionalize that,” the CEO Lewis Bateman said in a statement.
All these factors have contributed to the Dogecoin price rally. According to on-chain data, Dogecoin (DOGE) is trading at $0.3616, representing a 26.14% increase in the last 24 hours. Also, its one-day trading volume has surged by 103% to $38.2 billion.
Source: CoinMarketCap
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