Dogecoin, the 9th largest crypto by market cap, gained at least 7% on Tuesday, according to CoinGecko data. Market intelligence platform Santiment placed it among the top 10 list of trending tokens following a post from Tesla chief Elon Musk.
In a post on X, Musk called Doge the official mascot of the Department of Government Efficiency (DOGE). Previously, the billionaire said he could serve in the ‘DOGE department’ for the Trump administration.
Dogecoin gains 7% on the daily charts
Dogecoin, the largest memecoin by market cap, is trading in the 24-hour range of $0.096 and $0.104 on CoinGecko. It has recorded gains of at least 7% at press time, following the social media attention from Elon Musk’s post. Elon Musk, the CEO of Tesla and SpaceX, said in a post that Doge will be the official mascot of the DOGE (Department of Government Efficiency). The fictitious department emerged after Trump said that he would like Musk to serve in his administration if he were to become president again. In response, the billionaire named the department ‘DOGE,’ taking from his reputation of being the DogeFather.
Naturally, our official mascot will be the Doge
— Elon Musk (@elonmusk) September 9, 2024
Apart from a surge in Dogecoin’s price, there has been a spiking interest across social media platforms. According to data from Santiment, Dogecoin was among the top 10 trending tokens on platforms like X, Reddit, Telegram, and Discord. Dogecoin ranked 8th in popularity, trailing behind major tokens like Bitcoin (BTC), Solana (SOL), and Tether (USDT). However, the question arises if the hype can sustain the price gains for the memecoin.
Cardinals Protocol can sustain Dogecoin’s growth
Dogecoin Foundation recently explained how a Cardinals Protocol will revolutionize the Dogecoin ecosystem. It explained that as a new system, it will introduce advanced functionalities by adding new features. It aims to improve scalability and expand its use cases beyond peer-to-peer transactions. As per the foundation, the key features will optimize transactions by bundling multiple transactions together, reducing fees, and increasing speed. As per the organization, “Cardinals addresses many of the scalability issues that other protocols like Bitcoin and Ethereum face while remaining true to the decentralized ethos of Dogecoin.”
The post reiterated that the protocol supports the DRC20 token standard. The standard is like Ethereum’s ERC-20 standard which allows the creation of fungible tokens and NFTs. The protocol also aims to open doors for DeFi applications, including staking, yield farming, and token swaps while introducing DEX functionality.
Therefore, it is worth noting that while Elon Musk’s tweets have historically led to short-term spikes in Dogecoin’s price, the introduction of the Cardinals Protocol offers sustainable optimism. If Dogecoin can address scalability issues while expanding functionalities, its use cases could drive long-term growth instead of just being a memecoin.
