Oct 16, 2024

6thTrade,

Dogecoin and Shiba Inu Soar Amid Political Speculation and Musk’s Bold Moves

Dogecoin (DOGE) and Shiba Inu (SHIB) have recently experienced impressive price surges, driven in part by social media buzz about Elon Musk and his potential involvement in U.S. politics. As Musk hinted at heading a hypothetical “Department of Government Efficiency” (DOGE) under a Trump administration, speculators have latched onto this narrative, seeing it as a bullish signal for Dogecoin. Musk, who recently donated $75 million to Donald Trump’s campaign, has fueled speculation that Dogecoin could benefit if Trump is elected, as the former president has suggested Musk could play a role in streamlining government if he returns to office​

Meme Coins on the Rise

Following Musk’s endorsement and his potential political role, Dogecoin saw an 8% spike in the last 24 hours, with trading volumes and large transactions up by 4.6%, signaling increased market activity. Dogecoin futures have also attracted significant attention, with open interest climbing by 22%, reflecting a growing optimism about the cryptocurrency’s potential. This momentum mirrors Dogecoin's 19% increase over September, building on its positive trend

Shiba Inu has likewise seen a strong uptick, surging 32% in September. The SHIB community has maintained engagement through efforts like token burning, which has removed millions of SHIB coins from circulation. In the past 24 hours alone, 3 million SHIB coins were burned, a move aimed at reducing supply and supporting long-term price stability. Despite a dip in large transactions, Shiba Inu’s active addresses increased by 17.2%, suggesting robust community interest

The Trump Effect on Dogecoin

Crypto analysts are now speculating on how a Trump victory in the 2024 U.S. presidential election could further impact meme coins like Dogecoin. According to Andrew Kang, Dogecoin could be an “interesting way to express a ‘Trump Victory’ trade,” thanks to the renewed potential for a Dogecoin ETF and the possibility of a “DOGE” department under Trump. The idea, although speculative, has resonated with Dogecoin enthusiasts who believe Musk’s influence could keep Dogecoin in the headlines. Analyst Unipcs echoes this sentiment, noting that Dogecoin’s recent performance aligns well with Trump’s rising poll numbers and Musk’s active involvement in Trump’s campaign​ $DOGE

Elon Musk’s Role in the DOGE Department

Musk’s recent hints at leading a “Department of Government Efficiency” have driven much of this speculative momentum. During an interview with Tucker Carlson, Musk discussed the potential role of such a department as a “garbage collector” for unnecessary regulations, aiming to streamline federal operations. While Musk has not confirmed any formal role, his statements have fueled anticipation around his possible influence on regulatory reforms, which could indirectly benefit Dogecoin. Trump, for his part, has expressed enthusiasm about Musk’s involvement, joking that Musk isn’t “too busy” to take on the role, despite his commitments as CEO of Tesla, SpaceX, and other ventures

The Future for Meme Coins

The resurgence of Dogecoin and Shiba Inu demonstrates the power of social and political narratives in the crypto world. Although meme coins like DOGE and SHIB are often seen as speculative, they have proven resilient and adaptable, drawing attention from both retail and institutional investors. The potential for an official role for Musk, coupled with rumors of a Dogecoin ETF, has ignited a new wave of interest, suggesting that these coins may continue to influence the broader market.

For now, the speculative allure of a “DOGE” department under Trump, along with ongoing market interest in meme coins, has added a new layer of excitement to the crypto space. As both Dogecoin and Shiba Inu ride the waves of political and social momentum, they showcase the unique role that meme coins can play in capturing public attention and market activity.

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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.