Meme-coin DOGE soars as Musk, Ramaswamy join Trump initiative

Billionaire and Tesla CEO Elon Musk-promoted cryptocurrency Dogecoin, also known as 'meme coin', soared as high as 32.5% following the Trump administration's appointment of Musk and Indian-origin billionaire entrepreneur Vivek Ramaswamy for the newly formed DOGE or the Department of Government Efficiency.

In the early trade on Wednesday too, DOGE surged 10% before plunging 9.32% to settle at $0.3722, according to the data shared by the U.S.-based crypto exchange CoinMarketCap. DOGE has seen volume surge of around 39.42% in the past 24 hours, taking its market cap to $54.35 billion. In the past one week alone, the meme-coin has zoomed 100% in overall value.

Dogecoin’s rally is being fuelled by renewed memecoin hype, strong support from Elon Musk, and speculation around pro-crypto policies with Trump's election win.

The stakeholders say sustaining this momentum may be challenging due to its limited utility and retail-driven volatility. "Key factors like Bitcoin’s market performance and potential Musk-led integrations could determine whether DOGE reaches its previous highs or faces a pullback. At the end of the day, it’s a highly volatile crypto, and investors should remain cautious while investing," says the latest commentary by homegrown crypto exchange CoinSwitch Markets.

Vikram Subburaj, CEO, Giottus Crypto Platform, says DOGE’s thrilling rise is a perfect example of how a political move can fuel price action in real-time. "DOGE prices have surged nearly 250% in the past 30 days, reaching levels unseen since 2021. This playful yet impactful decision has elevated DOGE’s profile by strengthening its fundamentals and embedding it within a real-world narrative."

Traders are now eyeing the $1 mark, buoyed by the idea that memes are not just for laughs—they can also drive serious market momentum. "DOGE’s journey shows that cultural influence and community-driven enthusiasm can be as powerful as traditional financial metrics," says Subburaj.

The world's biggest digital currency Bitcoin, meanwhile, has hit another crucial milestone as it crossed the $90,000 mark for the first time following Donald Trump’s astounding victory in the U.S. elections. Currently (12.57 IST), the cryptocurrency has settled down a bit at $87,250.36, down 2.66%, though it's still up 19% since the November 5 elections in the U.S. "The cryptocurrency (BTC) is now just over 11% away from $100,000 from its current local top, continuing its strong upward momentum," says CoinSwitch.

Subburaj of Giottus says Bitcoin’s surge to nearly $90,000 marks an electrifying moment for the market, reflecting the bullish sentiment among traders. He attributes the rally to record inflows into spot Bitcoin ETFs, which amassed over $2 billion in the past three trading days alone. "This is a critical phase where institutional investors are the primary drivers of growth. But retail engagement will be key in determining whether Bitcoin decisively breaches the $90,000 mark and sustains its upward trajectory. Investors should be mindful of potential pullbacks and corrections along the way, which are natural in any rally."

Ethereum is down 8.99% today, trading at $3,134.09, taking its m-cap down to $378.27 billion. Ethereum has seen around 20% rally since Trump was elected to power.

Musk has been a vocal supporter of meme-coin DOGE or Dogecoin since 2020, which has often influenced its price. In December 2021, he had said that Tesla would accept payments in DOGE for its merchandise payments. In April 2023, he even changed Twitter's logo, though for a brief period, to Doge meme.