Dogecoin surges 20% after Trump announces a Department of Government Efficiency – DOGE

Dogecoin The US dollar continued to soar on Tuesday evening, continuing its post-election rise after President-elect Donald Trump formally announced the creation of the Department of Government Efficiency, which he referred to as “DOGE” in his statement.

Tesla CEO Elon Musk and Vivek Ramaswamy, a former Republican presidential candidate and co-founder of Strive Asset Management, will lead the division, Trump said in a statement. Together, “they will pave the way for my administration to cut government bureaucracy, eliminate excessive regulations, cut wasteful spending and restructure federal agencies.”

Dogecoin recently rose by almost 20%. It was one of the biggest winners of the post-election rally, gaining 153% since election day Bitcoins 30% increase over the same period. It also shot past XRP this week becoming the sixth largest cryptocurrency by market capitalization.

Memecoins are considered an indicator of retail interest and risk tolerance in cryptocurrencies. When memecoin activity increases, it usually indicates that retail investors are participating and are interested in speculating further out on the risk curve.

Trump first floated the idea of ​​an efficiency commission in September. Since then, Musk – who has called himself the “Dogefather” in the past and is known for making public comments on the memecoin that influence its price – has posted on his social media platform means “government efficiency” or “DOGE”

Dogecoin gained traction in 2021 after Musk endorsed it and the ongoing hype on social media has since become a major catalyst for the coin. In May of this year, Musk's contributions fueled Dogecoin's rise to its all-time high of 67 cents, according to Coin Metrics. However, his appearance on SNL at the time, in which he called Dogecoin “a hustle,” caused the price to drop.

The rest of the crypto market was in a lull after the post-election recovery. Bitcoin was trading flat at around $87,000, after briefly hitting $90,000 in late afternoon trading. Crypto stocks Coinbase And Microstrategy were 1% and 2% lower in extended trading, respectively.