In summary
- Dogecoin (DOGE) reached $0.4398 on Binance, its highest value in three years, after an increase of 143.2% in one week.
- Optimism for pro-crypto policies following Trump’s victory fueled the Dogecoin rally, but it faces the challenge of attracting institutional interest.
- Elon Musk created a frenzy by suggesting a “Department of Government Efficiency” under the acronym “DOGE,” sending the price of DOGE skyrocketing.
Dogecoin (DOGE) soared to $0.4398 on the Binance Cryptocurrency exchange on Tuesday, marking its highest value in more than three years.
The Shiba Inu-based memecoin has seen a massive 143.2% surge over the past week, significantly outperforming Bitcoin (BTC)’s 28.2% gain over the same period, according to data from CoinGecko.
The rise follows Donald Trump’s election victory, increasing optimism for speculative assets such as Dogecoin, while traders bet on pro-crypto policies. The challenge now is for DOGE to maintain this momentum while attracting long-term institutional interest.
“With election uncertainty now behind us, the rally in cryptocurrency markets appears sustainable, driven by positive signals from the US,” Julien Auchecorne, head of Auros Ventures, told Decrypt. “However, Uncertainties remain, especially around altcoins. “We are closely watching whether altcoins will continue to lag Bitcoin or begin to outperform, potentially regaining retail interest.”
Elon Musk, the self-proclaimed “Dogefather,” generated even more buzz last month by suggesting that, if appointed by Trump, he could lead a “Department of Government Efficiency” (DOGE) with the ambitious goal of cutting $2 trillion or more from the budget. federal.
The nod to the acronym “DOGE” sent Dogecoin enthusiasts into a frenzy, propelling the currency to new heights. Musk’s endorsement, whether serious or joking, often causes increases in the price of DOGE.
Despite the excitement around Dogecoin, Auchecorne points out some structural challenges in the Altcoin market.
“The structure of altcoin launches is under pressure, especially as institutional incentives still heavily favor de-risking at launch and redeploying capital afterwards,” he said. “Protocols are now adjusting their strategies to retain institutional participation post-launch, taking a more measured approach towards their target fully diluted valuations (FDVs).”
For example, Aptos, a network founded by former Meta employees, saw rapid selling in 2022 by early institutional investors following its launch, leading to sharp declines after launch. In contrast, protocols like Arbitrum are adopting gradual token launches to retain institutional participation and achieve more stable growth.
However, questions remain about the sustainability of the DOGE rally.
“As these dynamics evolve, we expect capital flows to be selectively directed toward projects that can sustainably balance institutional needs with strong market appeal,” Auchechorne said.
Amid the retail-driven frenzy, Canada-based company Spirit Blockchain Capital has said it wants to emulate MicroStrategy’s Bitcoin accumulation plan to build large Dogecoin reserves.
Spirit’s approach includes the launch of exchange-traded products (ETPs) and payment gateways, seeking to institutionalize the Dogecoin use case beyond its origins as a meme.
Although Dogecoin remains below its all-time high of $0.73 in 2021, the recent rally indicates that it is far from losing its appeal. The original meme coin is now the sixth-largest cryptocurrency by market capitalization, ahead of Circle’s stablecoin USDC and Ripple (XRP), according to data from CoinGecko.
Edited by Stacy Elliott.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
