Dogecoin Surges: How It Outperforms Major Corporations and Its Connection to Elon Musk’s New Government Department

Mercedes-Benz, SberbankDrink Monster, Saudi Telecom, Saudi National Bank, Volvo or ING. At first glance, several different organizations have one thing in common – they are defeated by virtual money with a dog as its logo and name.

In fact, if we were to take the market capitalization of the Dogecoin cryptocurrency, it would be comfortable to include the first four hundred most valuable companies in this category. Due to the high volatility of cryptocurrency, it is not possible to write the exact amount, however, at the time of writing this text, the market value exceeds almost 61 billion dollars, ie 1.45 trillion crowns.

Dogecoin is among the winners of the United States presidential election. President-elect Donald Trump has announced that he is creating a new department, specifically the “Department of Government Effectiveness.” According to his words, he will appoint a billionaire as the head of the office Elon Musk and an unsuccessful candidate for the Republican presidential nomination Viveka Ramaswamyho.

At first glance, it may seem like a completely unrelated event. In English, however, the name of the department is the Department for Government Efficiency. Abbreviation – DOGE. The richest man in the world has already drawn attention to this information on his social network X (Twitter first).

Musk has a rich history with Dogecoin. Three years ago, for example, he announced that he owned a car company Tesla accept the virtual currency, which actually happened. The exchange rate rose, but very quickly began to fall again. And people found out that they can’t buy such cars with Dogecoin. In exchange for them, they would receive at least a model car or a belt clip.

Musk has also referred to Dogecoin as people’s digital currency in the past. All this publicity for a virtual currency that was originally created based on an internet meme as a humorous reference to arguably the most famous digital currency bitcoinnow made into an elite club.

According to CoinGecko, nearly $18 billion worth of dogecoin was traded on Monday. So Dogecoin has been traded for more money than, for example, Microsoft and Amazon combined.

Two days later, this volume doubled and a half.

While Bitcoin is at an all-time high, its parodic counterpart is also in the running for a potential peak. Since the election alone, his value has increased by about 175 percent, making him one of the biggest winners in the Trump vs. Harris.

However, this is still not the highest value the virtual currency has ever achieved. It still belongs to the date May 21, 2021. Dogecoin cost $0.7376 at that time. And again, there’s the Musk connection. On that day, the billionaire appeared on TV ​​​​in the popular program “Saturday Night Live”, where he mentioned Dogecoin several times.

However, before investing, it should be kept in mind that it is originally a cryptocurrency parody. This is reflected in its technology and security, which is at a lower level than, for example, Bitcoin.

There is a risk of extreme volatility in cryptocurrency trading. For example, after Musk bought Twitter, the value rose 35 percent, only to then fall again. After the aforementioned historical high, it fell again by 91 percent.

These declines highlight the risk associated with investing in cryptocurrencies based on speculation and trends rather than fundamentals. Dogecoin suffers from this the most. This is because many people invest in DOGE based on social media trends or influencer recommendations, which can lead to irrational decisions.

In turn, communities on platforms such as Reddit can keep the price of DOGE high through coordinated buying activity, thus gaining a high degree of control over the value of the cryptocurrency.