Dogecoin (DOGE) rides on Musk's coattails! This year it soared to a three-year high, and a DOGE ETF might be launched in the future?
Due to Trump's election as president and the support from him and Musk, Dogecoin surged to its highest point in three years at $0.48 in early December.
It had previously reached an all-time high of $0.73 in May 2021, and had been languishing at low levels for the following years until recently experiencing a revival.
A few months ago, Trump, the self-proclaimed "cryptocurrency champion," kicked off his campaign to reclaim the White House, which also propelled the price of Dogecoin to skyrocket. His victory on election day not only ignited enthusiasm across the entire cryptocurrency market but also benefited meme coins (including Dogecoin).
Meanwhile, Musk posted a series of proposals on X (formerly Twitter) regarding digital currencies and cutting government spending, which caused the token's price to rise multiple times.
Shortly after election day, Trump announced that Elon Musk and entrepreneur Vivek Ramaswamy would jointly lead a U.S. government agency named after Dogecoin—the Department of Government Efficiency (DOGE). The goal of this department is to cut U.S. government spending and reduce the federal budget deficit. A few weeks prior to the official announcement, Musk had hinted at this news, which thrilled Dogecoin holders.
In November, Musk stated on X: "We will also set up a leaderboard to highlight the most ridiculous taxpayer spending behaviors, which are both extremely tragic and extremely amusing."
When Musk shared this plan in October, the price of Dogecoin also saw a significant increase. Although Dogecoin's name clearly derives from Musk's favorite meme coin, and the name of this department cleverly aligns with Dogecoin's stock code, the plan itself does not actually involve cryptocurrency.
Analysts told Decrypt that with the approval of spot Bitcoin and Ethereum ETFs earlier this year in the U.S., a Dogecoin-based ETF might also be launched in the future, open to investors. This means that Dogecoin could potentially expand its market influence by leveraging this trend.
