Dogecoin (DOGE) saw a massive surge in value, jumping around 25.4% over the past 24 hours, briefly reaching $0.2133, according to data from CoinMarketCap.
Notably, the spike in price pushed Dogecoin’s market capitalization to just over $29 billion, temporarily surpassing XRP to become the seventh largest cryptocurrencies by market value, before receding.
The remarkable rally came in the wake of recent comments made by X (formerly Twitter) owner Elon Musk, who has historically been a vocal supporter of the cryptocurrency. In an interview with Joe Rogan, Musk shared his thoughts on government efficiency, jokingly proposing the idea of a “Department of Government Efficiency” (DOGE).
Musk criticized the growing bureaucracy of the U.S. government, pointing out the massive number of federal agencies, which he described as “suffocating” the country. He argued that government spending was spiraling out of control, with interest payments on the national debt now surpassing the defense budget, a trend that could ultimately lead America towards bankruptcy.
Musk’s comment reignited investor enthusiasm for DOGE, sparking a massive 243.37% surge in trading volume, which reached $10.99 billion over the past 24 hours, coinciding with growing optimism as polls showed Trump emerging victorious.
Notably, Musk’s influence on Dogecoin is well-documented. Earlier in August, the billionaire made headlines when he responded to Republican presidential candidate Donald Trump’s suggestion of adding Musk to his administration. Musk shared an image of himself alongside the caption “DOGE,” subtly playing into the idea of joining a future government that could embrace a Dogecoin-friendly agenda. This gesture led to a 6% spike in Dogecoin’s value on the day. With Trump now winning the U.S. election, investors are hopeful that Musk’s proposed “DOGE Department” will become a reality, potentially driving further price gains for the token.
Musk’s tweets and public actions have historically moved Dogecoin’s price, with notable incidents such as a 25% surge in April 2023 after Twitter’s logo was temporarily changed to Dogecoin’s mascot. The cryptocurrency community has closely followed Musk’s interactions with the market, as his influence on Dogecoin is seen as both a meme-driven catalyst and a serious market force.
In addition to Musk’s remarks, analysts have predicted a continued upward trajectory for Dogecoin, with crypto expert Ali Martinez noting that Dogecoin could be set for a “parabolic bull run” if it can maintain a sustained close above $0.20. Martinez pointed to a historical pattern that saw Dogecoin break out from a multi-year descending triangle and surge by 200%, suggesting that the current dip might be setting the stage for the next big rally.
As Dogecoin continues to attract attention, the cryptocurrency’s network is also expanding, with over 35,000 new addresses added daily according to data from Intotheblock.
At press time, DOGE was trading at $0.1963, reflecting a 16.87% surge over the past 2 hours.