Dogecoin Interest rates rose Tuesday night, continuing their post-election rise after President-elect Donald Trump formally announced the creation of the Department of Government Efficiency, which he referred to as “DOGE” in his statement.
Tesla CEO Elon Musk and Vivek Ramaswamy, the former Republican presidential candidate and co-founder of Strive Asset Management, will lead the department, Trump said in a statement. Together, “they will pave the way for my administration to dismantle government bureaucracy, trim redundant regulations, cut wasteful expenditures, and restructure federal agencies.”
Dogecoin rose nearly 20%, before paring gains. He was one of the biggest winners in the post-election rally, receiving 153% since Election Day compared to Bitcoin Up 30% over the same period as last shot XRP this week To become the sixth largest cryptocurrency in terms of market capitalization.
Dogecoin jumped after President-elect Donald Trump announced the creation of the Department of Government Efficiency, or DOGE.
Memecoins are seen as a measure of retail interest and risk appetite in cryptocurrencies. When memecoin activity increases, it usually indicates that retail investors are participating and have an appetite to speculate further down the risk curve.
Trump initially floated the idea of creating an efficiency commission in September. Since then, Musk — who has called himself the “Dogefather” in the past and has been known for making public comments about the memecoin influencing its price — has taken to his social media platform X, referring to the commission as the “Department of Government Efficiency” or “DOGE.”
Dogecoin gained prominence in 2021 following Musk's endorsement and ongoing social media hype, which has since become a major catalyst for the coin. In May of that year, Musk's posts fueled Dogecoin's rise to an all-time high of 67 cents, according to Coin Metrics. Although at the time, his appearance on SNL, in which he described Dogecoin as a “hustle,” sent its price crashing.
The rest of the cryptocurrency market has been on pause following its post-election rally. Bitcoin traded flat at around $87,000, after briefly touching $90,000 in the late afternoon. Crypto stocks Coinbase and Accurate strategy Shares fell 1% and 2%, respectively, in extended trading.
