Dogecoin (DOGE) has risen over 25% in the past 24 hours, continuing its strong weekly performance, with an increase of over 65% in the last 30 days, making it the best-performing major cryptocurrency. This surge has been driven by renewed support from Elon Musk, who has publicly supported and promoted Dogecoin since 2021.
Musk proposed the establishment of an agency called the Department of Government Efficiency (D.O.G.E), aimed at improving the efficiency of government spending and monetary planning, which is clearly a nod to Dogecoin and has become part of the Republican campaign.
Following the news of Trump winning a second term as President of the United States, Dogecoin and other tokens rose earlier on Wednesday. According to betting market data, Trump's odds significantly increased on Tuesday night.
In the past 24 hours, over $30 million in short positions were liquidated in DOGE futures trading, a notably high figure indicating that part of the surge was due to the liquidation of losing trades.
As of Wednesday, the number of outstanding contracts for DOGE has increased to 8.3 billion tokens, up from 7 billion tokens on Monday, showing strong market demand for further volatility.
Additionally, a D.O.G.E meme token issued on Ethereum has risen 77% in the past 24 hours, with a total increase of 500% since CoinDesk first analyzed the demand for the token.
The optimistic sentiment around Dogecoin has also begun to spread to other dog-themed tokens, with Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) all rising over 10%. The average increase across the entire industry was 16%, surpassing the 7.2% rise of the CoinDesk 20 (CD20) major index.
Notable trader 'unipcs' stated on social media that he remains bullish on DOGE and D.O.G.E, expecting both tokens and Bitcoin to rise further. He pointed out that Elon Musk's support has not yet fully reflected in the price of DOGE.
"I particularly believe that the 'Elon factor' has not been fully priced in by the market," unipcs said. "The narrative about how Elon is actively supporting Trump and the 'Department of Government Efficiency' could become a decisive factor in Trump's victory, which will be a key catalyst for driving Dogecoin and the D.O.G.E Ethereum meme token higher."
"I believe many are underestimating the extent to which these assets will rise from here."
Traders have long viewed Trump's victory as a bullish catalyst for the industry, as he has a supportive stance on cryptocurrency and has pledged to make the U.S. a Bitcoin powerhouse. In contrast, Democratic Vice President Kamala Harris has not made similar commitments but has stated that she will introduce regulations to protect certain groups.