According to CoinGecko data, Dogecoin, the ninth-largest cryptocurrency by market capitalization, experienced a 7% surge on Tuesday.
This upward movement in price followed a post by Tesla CEO Elon Musk on the social media platform X, in which he humorously declared Dogecoin the official mascot of the fictitious Department of Government Efficiency (DOGE).
Dogecoin gains momentum after Musk’s post
Following Elon Musk’s social media post, Dogecoin saw immediate gains, trading within a 24-hour range of $0.096 to $0.104. The Tesla and SpaceX CEO’s comments often significantly impact the cryptocurrency market, and this instance was no exception. The mention of Dogecoin in Musk’s post led to a spike in its price and increased interest across various social media platforms. According to data from Santiment, Dogecoin ranked among the top 10 trending tokens on platforms such as X, Reddit, Telegram, and Discord. Despite trailing behind significant cryptocurrencies like Bitcoin (BTC), Solana (SOL), and Tether (USDT), Dogecoin’s presence in the top 10 indicates the strong influence of Musk’s comments on the market.
Musk’s influence and Dogecoin’s price action
Elon Musk’s influence on Dogecoin’s price is well-documented, with his previous tweets often leading to short-term spikes. In this recent post, Musk humorously referred to Dogecoin as the official mascot of a fictitious government department, continuing his playful engagement with the cryptocurrency. The reference to the DOGE (Department of Government Efficiency) emerged from a previous statement by former President Donald Trump, who mentioned the possibility of Musk serving in his administration. Musk, known for his role as the “DogeFather,” quickly responded by coining the fictional department’s name, further fueling interest in the cryptocurrency.
Cardinals protocol could sustain Dogecoin’s growth
While Musk’s tweets have historically led to short-lived price increases, there is potential for sustained growth with introducing of the Cardinals Protocol. The Dogecoin Foundation recently announced that this new system aims to revolutionize the ecosystem by addressing scalability issues and expanding its use cases. The Cardinals Protocol is designed to optimize transactions by bundling them, reducing fees, and increasing transaction speeds. By introducing advanced functionalities, Dogecoin could extend beyond its current status as a memecoin and offer more significant value to its users.
The Cardinals Protocol also supports the DRC20 token standard, comparable to Ethereum’s ERC-20 standard. This new feature will enable the creation of fungible and non-fungible tokens (NFTs) on the Dogecoin network. Additionally, the protocol plans to open doors for decentralized finance (DeFi) applications, including staking, yield farming, and token swaps. Introducing decentralized exchange (DEX) functionality further enhances the potential for Dogecoin’s long-term growth.
Elon Musk’s influence remains a powerful driver of Dogecoin’s price action, but introducing the Cardinals Protocol offers a more sustainable path forward. By addressing scalability issues and expanding the coin’s functionality, Dogecoin could see continued growth, driven by real-world use cases rather than just social media hype.