After President-elect Donald Trump formally announced the establishment of the Department of Government Efficiency, or “DOGE,” Dogecoin continued its postelection rally, soaring further Tuesday night.
Trump announced that Vivek Ramaswamy, a former Republican presidential candidate and co-founder of Strive Asset Management, and Tesla CEO Elon Musk will head the department.
When combined, they “will pave the way for my Administration to restructure Federal Agencies, cut unnecessary spending, slash excessive regulations, and dismantle Government Bureaucracy.”
Dogecoin has gained around 20% before reversing its gains. Compared to bitcoin, which has increased by 30% since election day, it has gained 153%, making it one of the largest winners in the postelection surge. In terms of market capitalisation, it also surpassed XRP this week to take the sixth-largest spot.
Memecoins are seen as a proxy for the level of risk tolerance and customer interest in cryptocurrencies. An increase in memecoin activity typically signifies the involvement of ordinary investors who are eager to speculate farther out on the risk curve. In September, Trump first suggested the creation of an efficiency commission.
Since then, Musk—who has previously referred to himself as the “Dogefather” and has been known to make remarks in public regarding the memecoin that affect its value—has written on his social media platform X, calling the commission the “Department of Government Efficiency” or “D.O.G.E.”
Source (CNBC)
