Dogecoin Surges on U.S. Election Day Hype

Dogecoin (DOGE) reached a peak of $0.21 on U.S. Election Day, marking a seven-month high fueled by Tesla CEO Elon Musk’s tweets and his public appearances alongside former President Donald Trump. The meme coin has surged by 30% in the past 24 hours, with a weekly gain of 20.6%, according to CoinGecko. In a surprising turn, DOGE also flipped Ripple (XRP) to become the 7th largest cryptocurrency, reaching a market cap of $30 billion.

While still below its all-time high of $0.73 set in 2021, Dogecoin’s Election Day rally underscores the lasting appeal of the meme coin, particularly among fans of Musk. The surge in DOGE mirrors broader optimism in the crypto market, as Bitcoin (BTC) also hit a record high of $74,504, driven by Bitcoin ETF demand and a bullish sentiment surrounding a possible Trump victory.

“Although Bitcoin is sitting at record highs, it feels like this rally could just be getting started,” said Josh Gilbert, market analyst at eToro. “This bull market has a lot of weight behind it, and that could keep driving the asset higher.” Analysts suggest this momentum could further benefit altcoins like DOGE, which tend to follow Bitcoin’s lead.

Musk and Trump’s Influence on Dogecoin’s Election Day Rally

Leading up to Election Day, Elon Musk and presidential candidate Donald Trump teased the idea of a “Department of Government Efficiency” (D.O.G.E.), stoking excitement among Dogecoin fans. Musk playfully engaged with the concept on Twitter, while Trump promised a pro-crypto stance if elected, creating a unique synergy that boosted DOGE’s value by 84% over the past month.

Unlike Vice President Kamala Harris, who has remained relatively quiet on crypto, Trump’s vocal support for the industry has resonated with crypto enthusiasts. His potential return to office has spurred optimism that his policies would favor digital assets, a sentiment reflected in what analysts are calling the “Trump trade.”

Known for pushing Dogecoin to its all-time high in 2021, Musk’s recent nods to the idea of leading a “D.O.G.E.” agency have rekindled enthusiasm. Though Musk has downplayed his crypto involvement recently, the possibility of him overseeing a crypto-focused government department has added further fuel to the rally.

The Enduring Appeal of Dogecoin

Created in 2013 as a lighthearted parody of Bitcoin, Dogecoin has risen through the ranks, propelled by internet culture and influential figures like Musk. As Election Day hype underscores its volatile yet resilient appeal, Dogecoin’s future may continue to benefit from the ongoing support of prominent backers, especially as pro-crypto policies gain momentum on the political stage.