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Doge Coin (DOGE) made headlines over the weekend as it surpassed XRP in market capitalization, driven by renewed hype linked to tech mogul Elon Musk. This surge saw Doge Coin prices rise by 14% in just 24 hours, pushing its seven-day gains to an impressive 55%. On Sunday, DOGE peaked at over $0.23, its highest level since November 2021, surpassing its previous yearly high of $0.22 recorded in April. As of the weekend, Doge Coin’s market cap exceeded $34 billion, overtaking XRP’s $33.3 billion.
This remarkable surge comes as trading interest in Dogecoin surged following speculation that the token’s abbreviation could play a symbolic role in a potential Trump administration. Over the past few months, Musk floated the concept of a “Department of Government Efficiency,” abbreviated as D.O.G.E, aimed at streamlining government spending. This idea captured traders’ imaginations, prompting heightened discussions and media buzz, as reported by various outlets.
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Former and the ‘soon-to-come’ President Donald Trump has hinted at appointing Musk to spearhead a “government efficiency commission” should he secure another term in office, as noted by BBC. This speculation has further fueled mainstream interest in DOGE, driving momentum among retail investors and traders.
The impact on the Doge Coin derivatives market has been equally notable. Open interest in DOGE futures has soared, nearing record highs from April. The past week alone saw a 33% increase in open interest, now totalling over 8.33 billion DOGE, valued at approximately $1.8 billion at current prices.
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Doge Coin’s rally isn’t limited to itself. A meme-based D.O.G.E token on the Ethereum blockchain has surged by over 600% since early October, reaching a market cap of just over $160 million as of Sunday. Although smaller in scale compared to Doge Coin, the parody token’s rise underscores the growing appetite for meme assets linked to Musk’s influence and political speculation.
Experts and traders alike remain bullish on Doge Coin, suggesting that the current momentum may continue. With significant media attention and trading interest aligned with Musk’s ventures, Doge Coin’s rally seems poised to keep captivating the market in the days to come.
Why is DOGE Coin Going Up?
Dogecoin is going up in price primarily due to the renewed interest and speculation linked to Elon Musk and his potential involvement in a future political administration. Musk’s idea of a “Department of Government Efficiency” (D.O.G.E), which would aim to make government spending more efficient, has caught the attention of traders and sparked widespread discussions. This concept has fueled expectations that Doge Coin could receive more mainstream media coverage and attention in retail trading circles.
Additionally, former President Donald Trump’s suggestion that he might enlist Musk to lead a government efficiency initiative if re-elected has further amplified the buzz. This potential for political and media exposure has driven significant trading interest, pushing Doge Coin prices up by 14% in 24 hours and contributing to a 55% gain over the past week.
Moreover, open interest in Doge Coin futures has surged, indicating strong investor confidence and momentum in the derivatives market. The overall interest in meme-related tokens, including a parody D.O.G.E token on Ethereum, has also added to the broader excitement around Doge Coin, propelling its price upward.
Feature image by Kanchanara
