The New Value Cycle of DOGE: Political Traffic Potential and the Possibility of Musk Entering Politics

Recently, the MEME ecosystem has been very popular, with many related tokens achieving several times or even tens of times in gains. However, most participants are still facing significant losses. Therefore, it is crucial to remain rational when participating, implement risk control, and strictly follow trading strategies, without being blinded by survivor bias.

When researching the MEME track, starting with the leading project DOGE, it is found that it is undergoing some interesting changes. Overall, influenced by the possibility of Musk entering politics, DOGE is tapping into new traffic potential - political traffic. The upcoming election results may usher in a new value cycle for DOGE.

The Development History of DOGE: Traffic is the Driving Force Behind MEME's Rise

DOGE was created in December 2013 by Billy Markus and Jackson Palmer, inspired by the popular "Doge" Shiba Inu meme. The founders' initial goal was to parody the hype surrounding the cryptocurrency market, creating a lighthearted, community-driven token. It aims to make cryptocurrency feel more "friendly" and "accessible," in contrast to Bitcoin.

DOGE has no supply limit, and it was initially designed to prevent long-term holders from hoarding. Technically, DOGE did not undergo significant innovations in its early days, and its core protocol is similar to that of Litecoin. However, its simplicity and community culture provide it with a market foundation.

DOGE has developed largely thanks to strong community support. In early 2014, the community raised funds through crowdfunding for the Jamaican bobsled team's participation in the Olympics, gaining significant media exposure. DOGE has also been used for other charitable projects, such as building water wells in Africa and sponsoring NASCAR drivers. Despite showcasing its potential as a payment tool, DOGE's price has remained low for a long time and is seen as a "joke" currency.

In 2017, the cryptocurrency market exploded, and the price of DOGE also rose, but it did not compare to mainstream cryptocurrencies. The crypto winter of 2018 caused the price of DOGE to fall back, and it was once regarded as a fringe currency. In 2020, the fate of DOGE underwent a significant transformation. Elon Musk became its most famous supporter, frequently mentioning DOGE on social media, calling it "the people's cryptocurrency" and referring to himself as the "Dogecoin Godfather." Musk's statements often triggered drastic fluctuations in the price of DOGE.

In April 2021, Musk released a "moon landing barking" DOGE image, and the price of DOGE reached an all-time high of $0.70. In May of the same year, after Musk hosted Saturday Night Live, despite a market sell-off, DOGE's popularity did not diminish, and community support grew stronger. Although Tesla did not accept DOGE payments afterwards, SpaceX announced that it would accept DOGE payments for certain services, enhancing its mainstream application scenarios.

Currently, the main source of traffic for the DOGE ecosystem is undoubtedly Musk. His potential political career, possibly accompanying Trump's return, will bring new political traffic potential for DOGE. Last week, the nearly 30% increase in DOGE was a response to this background.

Weekly Increase of Nearly 30%: Musk's "Political Efficiency Department" and the Political Traffic Potential of DOGE

Musk proposed the establishment of the "Department of Government Efficiency" (D.O.G.E), an initiative co-launched with Trump, aimed at conducting a comprehensive financial audit of the federal government and proposing suggestions to reduce waste, fraud, and unnecessary spending. Trump announced the plan during a speech in New York. Musk expressed his willingness to participate without seeking compensation or titles, emphasizing his determination to simplify government operations.

The name D.O.G.E may have been inspired by the DOGE community. On August 20, Musk replied to a post from a DOGE-related account on social media, which may have inspired the naming design of the department.

Trump actively responded, announcing during his speech at the New York Economic Club on September 6 that if elected president, he would work with Musk to establish a Government Efficiency Committee, officially responding to the D.O.G.E proposal.

In October, due to the ruling party's poor performance in hurricane disaster relief, the election situation reversed. Trump-related trades regained popularity, which also explains the trend of Bitcoin last week.

On October 17th, Musk once again discussed the D.O.G.E plan in a speech at the Pennsylvania City Hall. As a key swing state, any political promotion receives significant attention, which is the core reason for the 30% increase in DOGE.

The possibility of Musk entering politics is quite high. In this U.S. election, he firmly supports Trump, not only by acquiring social media platforms to break the Democratic media monopoly but also by actively donating to Trump's campaign team and using the platform for promotion. Trump has repeatedly expressed a desire to invite Musk into politics, to join the cabinet, or to serve as an advisor.

Trump's first term was marked by difficulties, partly due to early political allies drifting away. In this election, Trump has learned from his past mistakes and is making a strong effort to avoid interference from traditional establishment figures when choosing political allies. It is highly likely that he will involve influential political newcomers like Musk in the formulation of economic policies.

If the "Government Efficiency Department" is successfully established, its proposal to streamline government departments will be an important part of Trump's "small government" ideology and will certainly attract significant attention. The essence of MEME is traffic, which will provide new political traffic capture channels for DOGE. Imagine in January 2025, the U.S. Government Efficiency Department (D.O.G.E) initiates a 30% reduction in government department employees, which will inevitably bring huge exposure opportunities for DOGE.

Therefore, DOGE will be an important focal point in Trump-related transactions within the cryptocurrency industry, worthy of ongoing attention.