Dogecoin surges 20% after Department of Government Efficiency announcement

Dogecoin surged following President-elect Donald Trump's official announcement of the creation of the Department of Government Efficiency. The memecoin has emerged as one of the top performers in the postelection rally, skyrocketing over 150% since Election Day, far outpacing Bitcoin’s 30% gain over the same period. Trump had first proposed the idea of an efficiency commission in September, but the recent formalization of the department has fueled renewed investor interest in Dogecoin.

Dogecoin Soars After Trump Announces Department of Government Efficiency

Dogecoin surges on Tuesday night, extending its postelection rally after President-elect Donald Trump officially announced the creation of the Department of Government Efficiency, which he referred to as "DOGE" in his statement.

Trump revealed that Tesla CEO Elon Musk and Vivek Ramaswamy, former Republican presidential candidate and co-founder of Strive Asset Management, would lead the new department. In his announcement, Trump stated that Musk and Ramaswamy "will pave the way for my Administration to dismantle government bureaucracy, reduce unnecessary regulations, cut wasteful spending, and restructure federal agencies." The reference to "DOGE" in the department’s name sparked renewed excitement around the memecoin, contributing to its continued price surge.

Dogecoin was last up nearly 20%. It has been one of the biggest winners in the postelection rally, gaining 153% since election day compared to bitcoin’s 30% rise in the same period. It also shot past XRP this week to become the sixth largest cryptocurrency by market cap.

Memecoins Surge on Musk's "DOGE" Endorsement

Memecoins are often seen as a barometer of retail interest and risk appetite in the cryptocurrency market. When activity in memecoins picks up, it typically signals that retail investors are actively participating and willing to take on more speculative risk.

The idea of an efficiency commission was first proposed by Trump in September, but it gained more attention when Musk — who has previously referred to himself as the "Dogefather" — posted about it on his social media platform, X. He referred to the new commission as the “Department of Government Efficiency” or "D.O.G.E." This sparked renewed interest in Dogecoin, which has a history of benefiting from Musk’s public endorsements and social media hype.

Dogecoin’s relevance skyrocketed in 2021, largely due to Musk’s backing, which helped fuel a rally to its all-time high of 67 cents, according to Coin Metrics. However, Musk’s appearance on Saturday Night Live that same year, where he called Dogecoin “a hustle,” caused its price to crash.

Meanwhile, the broader crypto market showed little movement in the postelection period. Bitcoin remained relatively flat around $87,000, briefly touching $90,000 earlier in the day. Crypto stocks like Coinbase and MicroStrategy were down by 1% and 2%, respectively, in after-hours trading.

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