The wealthiest individual in the world, Elon Musk, is once again lending his support to the leading meme cryptocurrency, Dogecoin (DOGE), albeit in an indirect manner. This development has sparked speculation about the potential for Dogecoin to surge by 36,000%, similar to its performance during the 2021 bull market.
Elon Musk Returns to Promote Dogecoin
Elon Musk is back at it, promoting Dogecoin, this time through a political lens. Musk suggested that the ‘Department of Government Efficiency’ be the designation of the department he would consider leading if Donald Trump wins the election. This title cleverly forms the acronym ‘D.O.G.E’, establishing a link with Dogecoin’s ticker, DOGE.
Given Musk’s appreciation for Dogecoin, this action appears intentional and continues to foster a positive outlook for the prominent meme cryptocurrency as the U.S. elections approach. Notably, Dogecoin’s value increased by 31% over the past week, largely due to Musk’s repeated use of the term ‘D.O.G.E’ in his recent engagements.
On October 17, he participated in a town hall meeting in Pennsylvania where he once again indirectly promoted DOGE. When questioned by an attendee about the envisioned department, he replied, “Yeah, D.O.G.E,” resulting in the Dogecoin price climbing by more than 15% within a day. DOGE surpassed $0.14, marking its highest value since late July.
The previous day, Dogecoin had already surged by over 7% after Musk posted about how the ‘D.O.G.E’ department would ensure that politicians and bureaucrats do not hinder human advancement.
The meme cryptocurrency is likely responding positively to Musk’s references to ‘D.O.G.E’, especially with the growing possibility of the department’s establishment. Donald Trump currently leads in polling and has indicated a willingness to appoint Musk as head of this department, which would oversee and regulate government expenditures.
Can DOGE Surge by 36,000% Again?
With Elon Musk promoting Dogecoin once more, questions arise about whether DOGE can replicate a staggering 36,000% increase like it did during the 2021 bull market. Musk also endorsed DOGE during that time, significantly contributing to the cryptocurrency’s unprecedented rise to its all-time high (ATH) of $0.78.
Achieving a 36,000% rise for Dogecoin this time seems unlikely, as it would imply DOGE could reach $50 in this market cycle. Such a surge would result in a market cap of $7.3 trillion based on its circulating supply of 146.43 billion tokens. This scenario is nearly impossible given that the total crypto market cap is approximately $2.35 trillion.
Nevertheless, analysts like Javon Marks still envision the potential for Dogecoin to reach double digits in this bull cycle. Similarly, analyst Dima James recently posited that the meme coin might hit $10.
Featured image created with Dall.E, chart from Tradingview.com