Dogecoin’s price reached $0.21 on Wednesday for the first time in seven months thanks to Donald Trump’s victory against his main rival, Kamala Harris. According to CoinGecko’s data, DOGE has rallied 28% in the past 24 hours and is up 20.3% in the last seven days.
Notably, the meme coin has become the 7th largest cryptocurrency by market capitalization after flipping XRP. Its market valuation has surged to $28.2 billion.
Although Dogecoin is still way below its peak price of $0.73, recorded in May 2021, its latest rally indicates that it remains an appealing investment among investors.
Bitcoin Sets a New All-Time High
DOGE isn’t the only asset with massive gains this week, as the wider market has been largely green. For instance, Bitcoin is up 7%, trading at $74,873 today. It peaked at $76,000 on Wednesday, setting a new all-time high. According to various analysts, the growing demand for BTC is fueled by Trump’s win and rising interest in Bitcoin spot ETFs, which saw a daily trading volume of $6 billion yesterday.
Meanwhile, eToro market analyst Josh Gilbert says Bitcoin’s rally is just getting started. He argues that several catalysts, including interest rate cuts and the promised clear regulatory framework, will push the coin higher in 2025.
Primary Driver of Dogecoin’s Rally
So, what’s causing Dogecoin to outperform most of the top ten cryptocurrencies? Elon Musk, who campaigned for Donald Trump and proposed the creation of a Department of Government Efficiency (D.O.G.E), is the main reason behind the meme coin’s latest rally.
The X owner and the CEO of electric carmaking firm Tesla is also a huge fan of Dogecoin. While teasing D.O.G.E on his X account last month, Musk posted Dogecoin’s profile picture, fueling excitement among the meme coin’s fans. DOGE rallied 15.3% at the time. Since then, the token is up 84%.
Trump and His Crypto Promises
Unlike Kamala, Trump was vocal about cryptocurrency policy throughout the campaign, making several promises to the industry players. For example, he promised to back Bitcoin miners to ensure the remaining coins are mined in the United States. Also, he vowed to fire the Securities and Exchange Commission Chair, Gary Gensler, who faces accusations of attempting to block blockchain innovations by leveling unfair enforcement actions against crypto companies.
