DOGE will be a hot topic in the cryptocurrency industry that cannot be ignored in the Trump trade.

Author: @Web3Mario

Abstract: Recently, the MEME ecosystem has been very popular, so I continue to pay attention to and study related knowledge. Last week, many MEMEs achieved several times or even dozens of times in gains, but most of the stories I saw and heard were still about significant losses. Therefore, before narrating, I hope everyone remains rational when participating, ensures proper risk control, strictly implements trading strategies, and does not let survivor bias cloud their judgment. Back to the point, while researching the MEME track, I started with the leading project DOGE and found that DOGE is currently experiencing some interesting developments, and I have some insights to share. Overall, influenced by the increasing possibility of Musk's political involvement, DOGE is tapping into new traffic potential—political traffic. Therefore, the upcoming election results may usher in a new value cycle for DOGE.

Reviewing the Development History of DOGE, Traffic is the Primary Driving Force Behind MEME's Rise

Let’s briefly review the history of DOGE's development. Dogecoin was co-created by Billy Markus and Jackson Palmer in December 2013, inspired by the popular "Doge" Shiba Inu meme at the time. Initially, the founders created this light-hearted, community-driven token to satirize the market hype surrounding Bitcoin and other cryptocurrencies. Its development aimed to make cryptocurrency more "friendly" and "approachable," contrasting with Bitcoin's technical and financial nature.

Unlike Bitcoin's total supply cap of 21 million coins, Dogecoin has no supply limit. It was initially designed to prevent long-term holders from hoarding the currency. From a technical perspective, Dogecoin did not undergo significant innovations in its early years, with its core protocol being very similar to Litecoin. However, its simplicity and community-driven culture provided it with a certain market foundation.

Dogecoin's development has largely benefited from its strong community support. In early 2014, the Dogecoin community raised funds through crowdfunding to support the Jamaican bobsled team in participating in the Sochi Winter Olympics. Such events garnered significant media exposure for Dogecoin in its early stages, making it a symbol of internet culture.

Additionally, Dogecoin has been used for other charitable projects, such as funding well construction projects in Africa and sponsoring NASCAR driver Josh Wise. Although these events showcased Dogecoin's potential as a payment tool, its price remained relatively low for a long time, as it was still viewed as a "joke" currency.

Fast forward to 2017, with the explosion of the cryptocurrency market, Dogecoin's price also surged, although it could not compare to the gains of mainstream cryptocurrencies like Bitcoin and Ethereum. However, the cryptocurrency winter after 2018 saw Dogecoin's price decline, and it was once viewed as an outdated fringe currency. It wasn't until 2020 that Dogecoin's fate underwent a significant change. Elon Musk became its most famous supporter, mentioning Dogecoin in several tweets, calling it "the people's crypto" and referring to himself as the "DogeFather." Whenever Musk tweeted in support of Dogecoin, its price would experience dramatic fluctuations.

In April 2021, Musk tweeted the famous "To the Moon" Doge image, causing Dogecoin's price to reach an all-time high, breaking $0.70. Following that, in May 2021, after Musk hosted Saturday Night Live, although the market briefly sold off Dogecoin, its popularity did not wane, and community support grew stronger. Of course, in subsequent developments, although Tesla did not accept Dogecoin as payment, SpaceX announced it would accept Dogecoin for certain services, further enhancing Dogecoin's mainstream application scenarios.

Thus, we find that the current primary source of traffic in the DOGE ecosystem is undoubtedly Musk, and his potential return to politics, along with Trump's comeback, is likely to bring new traffic potential—political traffic—to DOGE. The nearly 30% increase in DOGE last week is a response to this backdrop.

Weekly Increase of Nearly 30%, Musk's "Department of Government Efficiency" and DOGE's Political Traffic Potential

In fact, this stems from Musk's political initiative to establish a "Department of Government Efficiency," abbreviated as D.O.G.E. This plan is a joint initiative he launched with former President Donald Trump, aimed at conducting a comprehensive financial audit of the federal government and proposing suggestions to reduce waste, fraud, and unnecessary spending. Trump announced this plan during a speech in New York, based on Musk's suggestion on X. Musk stated that he is willing to participate in this plan without seeking any compensation or title, emphasizing his determination to simplify government operations.

The name D.O.G.E indeed comes from the DOGE community. Musk responded to @Sir Doge Of the coin on his official X account on August 20, and this name likely inspired the department's name.

He later even shared an image expressing his willingness to serve, clearly demonstrating his intention. Since then, KOLs in the Doge sector have begun to hype this topic. Trump also responded positively, announcing during a speech at the New York Economic Club on September 6 that if elected president, he would work with Musk to create a government efficiency committee, effectively a formal response to D.O.G.E.

At that time, the election results were in a state of suspense, so the potential impact of this proposal was not amplified. However, as October approached, due to ineffective handling of hurricane relief, the approval ratings of the ruling party's Vice President Harris's team were greatly affected, leading to a significant reversal in support for both sides. Thus, the Trump trade began to regain popularity, which is also why BTC experienced a surge last week.

Just this week, Musk discussed the D.O.G.E plan again during a speech at a town hall in Pennsylvania on October 17. We know that Pennsylvania is a crucial swing state, and as the election enters its final moments, the attention garnered is unprecedented. Therefore, any political promotional activity will receive significant exposure, which is the core reason for DOGE's 30% increase.

First, let’s analyze whether Musk is likely to enter politics or if this is just an election hype. I believe it is quite possible for Musk to enter politics. We know that in this U.S. election, Musk is fully supporting Trump. Besides acquiring Twitter to break the Democratic Party's monopoly on mainstream media propaganda, he has also made substantial donations to Trump's campaign team and actively promoted his support for Trump on X. Trump has expressed great appreciation for this and has repeatedly stated in media interviews that he hopes to invite Musk to enter politics, join the cabinet, or serve as an advisor.

Those familiar with Trump's previous term may know that the difficulties he faced during his first term stemmed from the betrayal of his early political allies, which greatly affected his governance efficiency. We know that Trump's success in the first-term election was mainly due to the self-destruction of establishment candidate Hillary during the "Email Gate" incident, which led many traditional establishment politicians to switch sides to avoid being implicated, thus supporting populist Trump. However, after the election victory, the core interests of the establishment were based on globalization, which includes the military-industrial complex, new technology, and multinational asset management, clearly opposing populism. Therefore, after successfully avoiding disaster, the establishment distanced themselves from Trump. In this election, Trump has accumulated enough political background and has learned from the previous lesson to avoid traditional establishment interference in choosing political allies. This is why he chose the young Pence as his vice-presidential candidate. Therefore, selecting a new political outsider with broad influence like Musk for economic policy formulation is quite likely.

If the "Department of Government Efficiency" can be successfully established, its proposal to streamline government departments is a crucial part of Trump's "small government" agenda and will undoubtedly attract significant attention. We know that the essence of MEME is traffic, and this event will inevitably provide DOGE with new traffic capture channels—political traffic. Imagine in January 2025, the U.S. Department of Government Efficiency (D.O.G.E) initiates a 30% reduction in government departments; this will certainly provide excellent exposure opportunities for DOGE. Therefore, I believe DOGE will be a hot topic in the cryptocurrency industry that cannot be ignored in the Trump trade, and I will continue to keep an eye on it.

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