Dogecoin (DOGE) rose to $0.4398 on crypto exchange Binance on Tuesday, marking its highest value in more than three years.

The Shiba Inu-themed meme coin saw a massive 143.2% increase over the past week, which is significantly bigger than Bitcoin (BTC)’s 28.2% gain over the same period, according to CoinGecko data.

The rally follows Donald Trump’s election victory, increasing optimism for speculative assets like Dogecoin as traders bet on pro-crypto policies. The challenge now is for DOGE to maintain this momentum while attracting long-term institutional interest.

“With the elections behind us, the rally in crypto markets appears sustainable, supported by positive forward signals from the US,” said Julien Auchecorne, head of Auros Ventures. Declutter. “However, uncertainties remain, especially around altcoins. We are keeping a close eye on whether alts will continue to chase Bitcoin or if they will outperform, potentially pulling back retail interest.”

Elon Musk, the self-proclaimed ‘Dogefather’, caused further controversy last month by suggesting that, if appointed by Trump, he could lead a ‘Department of Government Efficiency’ (DOGE) with the ambitious goal of creating $2 trillion save dollars or more on government spending. the federal budget.

The nod to the acronym “DOGE” sent Dogecoin enthusiasts into a frenzy, pushing the coin to new heights. Musk’s endorsement – ​​whether serious or in jest – often leads to spikes in DOGE’s price.

Despite the excitement surrounding Dogecoin, Auchecorne points to some structural challenges in the altcoin market.

“The structure of altcoin launches is under pressure, especially as institutional incentives still strongly favor reducing risk at launch and redirecting capital afterwards,” he said. “Protocols are now adapting strategies to maintain institutional participation post-launch, taking a more measured approach. to their target fully diluted valuations (FDVs).”

For example, Aptos – a network founded by ex-Meta employees – saw rapid sell-offs in 2022 by early institutional investors after launch, causing a steep post-launch decline. In contrast, protocols like Arbitrum adopt gradual token releases to maintain institutional commitment and achieve more stable growth.

Still, questions remain about the sustainability of the DOGE rally.

“As these dynamics evolve, we expect capital flows to be selectively attracted to projects that can sustainably balance institutional needs with strong market appeal,” Auchechorne said.

Amid the retail-driven frenzy, Canada-based Spirit Blockchain Capital has said it wants to mirror MicroStrategy’s Bitcoin accumulation plan to build large reserves of Dogecoin.

Spirit’s approach includes launching exchange-traded products (ETPs) and payment gateways, seeking to institutionalize Dogecoin’s use case beyond its meme origins.

Although Dogecoin still remains below its all-time high of $0.73 in 2021, its recent rise indicates that it has far from lost its appeal. The original meme coin, now the sixth-largest cryptocurrency by market cap, ahead of Circle’s stabelcoin USDC and Ripple (XRP), shows CoinGecko data.

Edited by Stacy Elliott.