Dogecoin Soars to Three-Year High Amid US Initiative and ETF Prospects
Dogecoin has experienced a remarkable resurgence in 2024, reaching a three-year high of $0.48 in early December, driven by positive investor sentiments fueled by billionaire Elon Musk and President-elect Donald Trump.
Musk and Trump Drive Dogecoin’s Price Surge
Dogecoin’s price began to rise in recent months as Trump, a self-styled crypto champion, blazed a path towards retaking the White House. His victory on Election Day sparked a broader crypto market enthusiasm that has benefited meme coins, including Dogecoin. Musk, a long-time supporter of Dogecoin, has also rallied the token’s price multiple times through his posts on X (formerly Twitter).
US Initiative Shares Name with Dogecoin
Shortly after Election Day, Trump announced that Musk and entrepreneur Vivek Ramaswamy would lead an extra-governmental US department called the Department of Government Efficiency (DOGE), aimed at slashing US government spending and reducing the federal budget deficit. Although the initiative has nothing to do with crypto, its name has sparked excitement among Dogecoin holders.
Technical Issues and Security Concerns
Dogecoin’s network recently faced technical issues when a blockchain builder allegedly crashed about 70% of public nodes on the network. However, the Dogecoin Foundation disputed the claim, arguing that more than 1,000 nodes remained unaffected. The Foundation also noted that the network held up against the attempted takedown.
ETF Prospects on the Horizon
Analysts believe that Dogecoin-based ETFs could become available to investors in the US, following the approval of spot Bitcoin and Ethereum ETFs earlier this year. Grayscale is already considering Dogecoin for inclusion in its future exchange-traded products, and Valour has unveiled the Valour Dogecoin (DOGE) SEK ETP in Sweden, marking the first exchange-traded product in the region offering exposure to the meme-inspired crypto.
Source: Decrypt.co
