Bitrabo Editorial
Elon Musk, the wealthiest individual globally, is once again promoting Dogecoin (DOGE), albeit in an indirect manner. This has sparked discussions around the potential for Dogecoin to experience a staggering increase of 36,000%, similar to its surge during the 2021 market boom.
Musk’s Indirect Support for Dogecoin
This time, Musk’s promotion of Dogecoin comes with a political twist. He suggested naming a potential department he could lead under a future Donald Trump administration as the ‘Department of Government Efficiency.’ The acronym ‘D.O.G.E’ has drawn parallels to Dogecoin’s symbol, DOGE.
Given Musk’s known affection for Dogecoin, many view this action as intentional, boosting optimism for the meme coin as the U.S. elections approach. Notably, Dogecoin’s price has risen by 31% over the past week, primarily driven by Musk’s repeated use of the term ‘D.O.G.E’ during recent events.
During a town hall gathering in Pennsylvania on October 17, Musk once again referenced DOGE indirectly. When prompted by an audience member regarding the proposed department, he responded, “Yeah, D.O.G.E,” causing Dogecoin’s price to jump over 15% within 24 hours. This surge pushed DOGE above $0.14, marking its highest value since late July.
The day before, Dogecoin also saw an increase of over 7% following Musk’s remarks about the proposed ‘D.O.G.E’ department, which would ensure politicians and bureaucrats do not hinder societal progress.
It seems Dogecoin’s response is heightened by the potential reality of this department being established, especially with Donald Trump leading in the polls and proposing Musk as its head, responsible for overseeing government expenditures.
Could DOGE Experience a 36,000% Increase Again?
With Musk actively supporting Dogecoin again, speculation arises about whether DOGE could achieve a similar 36,000% increase like during the 2021 market surge. Musk’s endorsements at that time significantly contributed to Dogecoin reaching its peak value of $0.78.
However, a 36,000% increase in Dogecoin’s price this time would imply a rise to $50, resulting in a market capitalization of $7.3 trillion based on its current supply of 146.43 billion coins. This scenario appears far-fetched, considering the entire cryptocurrency market’s value stands at approximately $2.35 trillion.
Nevertheless, some crypto analysts, including Javon Marks, anticipate that Dogecoin could achieve double-digit prices during this market cycle. Analyst Dima James has even suggested that the meme coin might reach $10.