Tesla CEO Elon Musk, who owns the social media platform X, received attention by supporting former President Donald Trump at a campaign town hall. During the event in suburban Philadelphia, Musk first demonstrated the concept of a brand-new governmental entity called the "Department of Government Efficiency," to be dubbed the "DOGE" after the meme-based cryptocurrency of the same name. This announcement helped trigger a massive price increase for Dogecoin, reaching values over 13 cents for the first time since July.
The idea of having the Department of Government Efficiency (D.O.G.E) is relevant to Musk's continued backing of Trump's presidential bid. Since July, He has donated more than $75 mln to the American PAC helping Trump. Stating the case, Musk's engagement and endorsement assert not only his political view but also shareholder activism and awareness of retail investors, leading to speculative buying and bringing growth in the Dogecoin trades.
At a town hall, Elon Musk's vision for Dogecoin's development led to a 7% increase in its value, surpassing the overall market and Bitcoin's 1% growth. This weekly gain reached over 22%, making Dogecoin one of the top market performers. Additionally, Dogecoin attached to open interest, an unsettled futures bet, increased to over 5 billion tokens, bolstering stock flows and market volatility.
The speculative nature of this increase is linked closely to the public's perception of Musk's influence and his ability to bring about substantial changes through his platforms and investments. The crypto community is buzzing with discussions about the potential for Dogecoin to play a role in future governmental processes should Trump win the presidency and consider Musk's proposals seriously.
As for other Dogecoin-based tokens, traders and investors are watching Floki (FLOKI), etc., all of which may witness new jumps in value due to Musk's support and statements. Musk has been a huge fan of Dogecoins, consistently influencing the price direction through his tweets, which contain endorsements for or plans to incorporate cryptocurrency into Musk's business operations.
A new governmental department incorporating Dogecoin might increase the use of cryptocurrencies in official capacities, a new trend in the crypto market. This situation raises further questions about whether there is political interference, popularity culture's influence, or the organic movement of crypto markets.