Elon Musk’s Renewed Endorsement Sparks Rally
Dogecoin (DOGE), the cryptocurrency that has been a favorite among meme enthusiasts and casual traders alike, continues its winning streak. In the past 24 hours, DOGE has jumped over 25%, extending its 30-day gains to an impressive 65%. This surge in value makes it the best-performing major cryptocurrency.
The "Elon Factor" at Play
One of the primary drivers behind this rally is none other than Elon Musk. The billionaire entrepreneur and SpaceX CEO has been a long-time supporter of DOGE, having publicly endorsed it since 2021. Recently, he proposed the creation of a Department of Government Efficiency (D.O.G.E.), which he claimed would improve government spending and monetary planning.
Proposal for D.O.G.E
In a tweet on October 28, 2024, Musk tweeted:
"Powerd By10Russia Bitcoin Mining Ban, BitFuFu’s 80k ASIC Order, and a Rhodium UpdateShareNextStaypic.twitter.com/y0UCd5NvMj— Elon Musk (@elonmusk)October 28, 2024"
This proposal has been met with excitement from DOGE enthusiasts, who see it as a clear nod to the token. As Republican Donald Trump won his second term as U.S. president in early European hours on Wednesday, according to Fox News, investors are eagerly awaiting the implications of this development.
Short Liquidations and Open Interest Soar
Futures tracking DOGE have recorded over $30 million in short liquidations over the past 24 hours. This unusually high figure suggests that part of the move was driven by covering losing bets. Furthermore, open interest, or the number of unsettled futures bets, on DOGE is up to 8.30 billion tokens as of Wednesday compared to 7 billion tokens on Monday.
Parody D.O.G.E Token Sees Massive Gains
A parody D.O.G.E token on Ethereum has seen a staggering 77% increase in value over the past 24 hours. This token, which is not an official cryptocurrency but rather a novelty, has surged 500% since CoinDesk first reported on demand for it among some traders.
Bullish Sentiment Spills Over to Dog-Themed Tokens
The rally in DOGE has also had a positive impact on other dog-themed tokens. Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) have all seen significant gains, with sector tokens rising 16% on average.
Comparison to Broad-Based CoinDesk 20
In comparison to the broad-based CoinDesk 20 (CD20) majors index, which rose by 7.2%, DOGE has significantly outperformed its peers.
Expert Expectations: More Gains Ahead
Well-known trader ‘unipcs’ has been publicly bullish on DOGE and D.O.G.E since earlier this year, citing Musk’s endorsement as a key catalyst for the token’s growth. In an X message today, unipcs stated:
"I especially think the ‘Elon factor’ is not yet priced in for DOGE. There is going to be a media frenzy about Elon and how his aggressively backing Trump and the ‘Department of Government Efficiency’ narrative could have been a deciding factor for a Trump win, and that’s going to end up being a key catalyst that fuels both Dogecoin and the D.O.G.E ETH memecoin much higher."
Conclusion
The rally in DOGE is expected to continue, with many traders anticipating further gains. As unipcs noted, the "Elon factor" is not yet fully priced in for DOGE, and the proposed creation of a Department of Government Efficiency could be a key catalyst for growth.
Implications for the Industry
The election of Donald Trump as U.S. president has been perceived by many as bullish for the crypto industry due to his pro-crypto stance and promises to make the U.S. a bitcoin powerhouse. Democrat Kamala Harris, on the other hand, has not made similar promises but instead plans to introduce regulations to protect certain groups.
Final Thoughts
As the market continues to evolve, it is essential to stay informed about the latest developments in the crypto space. With DOGE leading the charge, investors should be prepared for further volatility and potential gains. Whether or not the Department of Government Efficiency becomes a reality remains to be seen, but one thing is certain: DOGE is here to stay.