Since Trump's victory, the cryptocurrency market has been rising for several days, with Bitcoin breaking $81,000 repeatedly hitting new highs, and among the top 30 cryptocurrencies by market capitalization, the most eye-catching rise has been from the original meme coin, Dogecoin ($DOGE).
Dogecoin overtakes USDC to become the 6th largest cryptocurrency.
CoinGecko data shows that Dogecoin surged from under $0.23 yesterday to about $0.3 today, reaching a new high since early November 2021. In the past 24 hours, Dogecoin has skyrocketed by 27.1%, with its market capitalization surpassing $4.239 billion, exceeding USDC's market capitalization of $3.69 billion, becoming the 6th largest cryptocurrency.
The extreme volatility of Dogecoin has also triggered a large amount of liquidation activity in the market. Coinglass data shows that in the past 24 hours, Dogecoin's liquidation amount reached $64.3 million, second only to Bitcoin and Ethereum.
Dog-themed meme coin surges.
Possibly influenced by Dogecoin's surge, other dog-themed meme coins have also performed well, dominating the top 100 cryptocurrencies by market capitalization in terms of growth.
Third place WIF: Soared 24.1%, market capitalization reached $3.11 billion.
Fourth place FLOKI: Up 22.3%, market capitalization reached $1.77 billion.
Fifth place Shiba Inu coin SHIB: Soared 18.6%, market capitalization reached $15.6 billion, just a step away from the top 10 cryptocurrencies by market capitalization.
Will Dogecoin replicate its gains from 2021?
Although Dogecoin has surged over 90% in the past week, it is still 60.3% away from its historical high in May 2021. This has raised market concerns: will Dogecoin replicate its upward trend during this bull market?
The surge of Dogecoin that year was closely related to Musk's support. Musk has repeatedly expressed his support for Dogecoin on X, calling it 'the people's cryptocurrency' and referring to himself as the 'Dogecoin father.'
He frequently posts tweets about Dogecoin, directly affecting investor sentiment and triggering multiple price surges. For example, in April 2021, Musk shared a meme image titled 'Doge barking at the moon,' causing Dogecoin's price to reach an all-time high, breaking $0.70.
Additionally, Musk revealed that Tesla will support Dogecoin payments for specific goods and announced that its planned supercharging stations will also accept Dogecoin payments, sparking market expectations for Dogecoin's application scenarios, making it familiar not only within the crypto community but also to the outside world.
Following Tesla, Musk announced that his aerospace company SpaceX will soon accept Dogecoin payments for some goods and services, and even named its satellite launch program 'Doge-1,' which is funded by Dogecoin, further boosting Dogecoin's price and visibility, as well as its potential as a payment method and funding tool.
Since then, Musk has continued to support Dogecoin on X, such as during an X Space in mid-January this year where he revealed that he still holds a large amount of Dogecoin and has not sold any because Dogecoin is his favorite cryptocurrency.
Musk advocates for the establishment of the Department of Government Efficiency (DOGE).
And before the U.S. presidential election, Musk launched an initiative called the 'Department of Government Efficiency' (DOGE) aimed at conducting a comprehensive financial audit of the U.S. federal government and recommending reductions in waste, fraud, and unnecessary expenditures. The name of this plan coincidentally matches the code for Dogecoin, 'DOGE.'
Subsequently, Trump adopted this idea and announced on September 6 during a speech at the New York Economic Club that if elected, he would establish a Department of Government Efficiency led by Musk. On October 27, Musk took the stage to support Trump, stating that his goal in leading the department is to cut $2 trillion from the federal budget.
The next day, Musk shared a photo of himself supporting Trump, wearing a 'Make America Great Again' hat and cheering, alongside a similar action picture of a Shiba Inu, once again promoting Dogecoin.
Now, with Trump's victory, the market is full of expectations for the establishment of the 'Department of Government Efficiency' and Musk's renewed promotion of Dogecoin, which has injected new political traffic into Dogecoin. The recent rise of Dogecoin may be a reaction to this background.
Therefore, when considering whether Dogecoin can replicate its 2021 trend, it is worth considering whether Musk will truly enter politics and whether the Department of Government Efficiency will be successfully established. If you answer 'yes' to these questions, then Dogecoin is highly likely to gain significant attention because the essence of meme coins is attention.
Note: Initially, Dogecoin was a meme coin based on an internet joke or pop culture, created in 2013 by Billy Markus and Jackson Palmer, originally intended as a light-hearted parody and satire of the then-serious and speculative cryptocurrency market.
The original inspiration for the creation of Dogecoin came from a Shiba Inu named Kabosu from Japan. Kabosu's owner, Atsuko Sato, frequently shared daily life photos of Kabosu online. In a February 13, 2010 article titled 'What to eat for dinner today?', Sato shared a photo of Kabosu with its paws crossed, smiling proudly, with a human-like expression. This photo later became the meme image of Dogecoin.
