Dogecoin shows strength after Trump rally hints at ticker

Dogecoin (DOGE) surged ahead of all meme coins and tokens following a tangential mention during Donald Trump's rally. DOGE rose above $0.15 after references to the Department of Government Efficiency.

Dogecoin (DOGE) may be the pioneer in meme assets, but it's also exhibiting behavior akin to a prominent PolitiFi token. Subsequent to Donald Trump's rally in Madison Square Garden, DOGE rallied after the incidental mention of the Department of Government Security.

This hypothetical regulator, conceived by billionaire Elon Musk, has the potential to elevate DOGE's visibility among a broader audience. In the immediate term, the exposure propelled DOGE ahead of all other memes, into a range surpassing $0.15.

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Dogecoin expanded beyond $0.15 after a period of sideways trading. | Source: Coinmarketcap

The recent breakout follows months of sideways trading, with DOGE confined between $0.08 and $0.12. The current rally ignites optimism for a resurgence of irrational demand akin to riskier meme tokens. Extreme predictions have resurfaced, suggesting DOGE may strive to reach near $1.

In the past few hours, the DOGE rally has extended, with the price exhibiting a vertical trajectory. DOGE has accrued 7.85% in value, becoming the most significant gainer among meme assets. Short-term expectations anticipate DOGE's recovery to $0.17 and a potential extension of gains during the US Presidential election season's final stretch.

DOGE has historically responded to Elon Musk's social media promotions, but a new factor has been added to its allure. In the preceding day, DOGE rallied alongside Bitcoin (BTC) while other assets lagged behind.

As of October, DOGE remains a straightforward payment coin. However, the recently introduced Dogebox project aims to incorporate programmability and transform DOGE into an app platform. Dogebox will introduce a voting platform, app-building capabilities, and e-commerce opportunities. There have been discussions about transitioning DOGE to a proof-of-stake token, though its current L1 differentiates the original meme from other tokens.

Will DOGE Regain its Meme Dominance?

For months, DOGE exhibited sideways movement, while more popular memes experienced more dramatic rallies. Nevertheless, the opportunities presented by DOGE offer far greater liquidity and a plethora of centralized listings. During the most recent rally, volumes surpassed $2.5B, with a $2.2M market depth on the downside.

DOGE mining is also attracting new holders, albeit with relatively modest payouts. DOGE contributes to the profitability of Litecoin (LTC) mining, especially with its rising price.

Over 21% of all DOGE is still held in the top wallet, which is predominantly utilized for long-term holding. Following its recent appreciation, the wallet's value surpassed $4.9B.

DOGE's own adoption may not spread as quickly, as meme traders predominantly rely on Ethereum and Solana (SOL). Versions of DOGE may exist on these networks, but the original coin requires a different type of wallet and access to centralized exchanges.

The recent rise of DOGE did not impact dog-themed tokens as a whole. DOGE has a distinctive user profile, primarily reliant on Binance and Coinbase trades. Additionally, an estimated 62% of all crypto volumes on Robinhood are linked to DOGE.

The mined meme coin has already gained mainstream popularity independent of similar dog-themed assets. Despite this, DOGE onboarding remains marginally more challenging compared to trading meme tokens.

Dogecoin is still mined on a separate L1, generating 10,000 DOGE for each Litecoin block. DOGE's supply will increase indefinitely, without a cap. Alongside DOGE, Bellscoin (BEL) also expanded in October, stabilizing around $1.47.

New Memes Emerge Around DOGE

In addition to DOGE, a new asset with the same ticker debuted this Monday. The asset, launched in October, is aptly named the Department of Government Efficiency (DOGE).

DOGE is a new meme token on Uniswap V2 that taps the Department of Government Security brand. | Source: Dextools

The token has rallied from $0.006 on October 10 to $0.06 in the past day. The token relied solely on a Uniswap V2 pair with $2.2M in liquidity. This version of DOGE may have a relatively short-lived rally.

The decentralized token is also inherently risky, as small-scale wallet clusters are forming. Several wallets have accumulated the token and may decide to sell at any moment.

Despite the popularity of the original DOGE, other tokens like SHIB, FLOKI, WIF, and NEIRO are still experiencing a downturn.