Dogecoin is a joke − so what’s behind its rally?
theconversation.comRockets aren’t the only thing Elon Musk is sending into the stratosphere. After a three-year plummet, Dogecoin is blasting off again, jumping 250% since the election of Donald Trump – part of a broader wave of optimism in the industry, due to Trump’s courting of crypto advocates during his campaign.
Trump’s informal appointment of Musk to what he calls the Department of Government Efficiency – D.O.G.E for short – also helped pump the dog-themed meme coin.
This isn’t the first time Musk, who styles himself as “the Dogefather,” has fueled interest in Dogecoin. In May 2021, its price shot up in anticipation of Musk’s guest appearance on “Saturday Night Live.” During one skit, Musk played a financial analyst in conversation with a Weekend Update host, who repeatedly asked him, “What is Dogecoin?” After some obfuscation, Musk’s character finally admitted that it was a hustle.
The price of the coin went into a freefall. Just over a year later, it had shed over 90% of its peak value. The losses hit small investors hard.
