As Donald Trump edges closer to reclaiming the White House, tech billionaire Elon Musk is set to play a significant role in the incoming administration, with the crypto market reacting positively to the news. Among the biggest beneficiaries of the rally is Dogecoin, Musk’s favorite cryptocurrency, which surged 24% as Trump gained ground in the race.
During his victory speech in West Palm Beach, Trump spent several minutes praising Musk, calling him a “special guy” and a “new star.” The president-elect also lauded Musk’s intellect, describing him as a “super genius” and emphasizing the need to protect such talents.
Dogecoin, the Shiba Inu-themed memecoin often linked to Musk, saw a sharp rise early on Wednesday, hitting $0.20, its highest value since April, before settling at $0.19 on Thursday. This marks a significant leap from a year ago, when Dogecoin had dipped as low as $0.07.
Musk, a prominent supporter of Trump, has played an instrumental role in the Republican candidate’s campaign, donating over $118 million and making frequent appearances at rallies wearing a “dark MAGA” hat. Given Musk’s close ties to Trump, Dogecoin enthusiasts view the president-elect’s victory as a major boost for the memecoin. Trump’s proposed establishment of a Department of Government Efficiency, dubbed “DOGE,” has further fueled optimism among Dogecoin supporters.
During a Pennsylvania town hall, when asked about the potential new department, Musk responded with a simple, “Yeah, D.O.G.E,” causing Dogecoin to surge 15%.
Dogecoin has risen 157% over the past year, with Musk’s backing of Trump contributing significantly to the coin’s growth, especially following his endorsement on X in the wake of a July assassination attempt on the billionaire. Following Musk’s endorsement, Dogecoin spiked by 24%.
Musk’s influence on Dogecoin is well-documented. In May 2021, his promotions, including an appearance on Saturday Night Live where he dubbed himself “dogefather,” propelled the cryptocurrency’s market cap to a peak of $88 billion. Although Musk faced a class-action lawsuit alleging a pump-and-dump scheme to inflate Dogecoin’s price, the case was dismissed in August.
As of now, Dogecoin remains the eighth-largest cryptocurrency, with a market cap surpassing $28 billion.
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