Dogecoin rose more than 10% to $0.3869 in early Asian trading hours on Wednesday after US President-elect Donald Trump said on Tuesday that Elon Musk and former Republican presidential candidate Vivek Ramaswamy will lead the newly created Department of Government Efficiency (DOGE) .

The acronym “DOGE” is a nod to Musk’s favorite cryptocurrency, dogecoin. Trump said in a statement that Musk and Ramaswamy will work from outside the government to provide “advice and guidance” to the White House and will work with the Office of Management and Budget to “drive large-scale structural reforms and an entrepreneurial approach to government to create”. never seen it before.” He added that this move would shock government systems.

It is not clear how the organization will operate. It could fall under the Federal Advisory Committee Act, which dictates how outside groups that advise the government must operate and be accountable to the public.

After the announcement, Musk posted on X: “Department of Government Efficiency. The merchandise will be (fire emojis).” He later added: “A threat to democracy? No, threat to BUREAUCRACY!!!”

Ministry of Government Efficiency

The merchandise will be 🔥🔥🔥

— Elon Musk (@elonmusk) November 13, 2024

Trump had made it clear that Musk would likely not take any full-time position given his other commitments.

Although Dogecoin initially rose 10% after the news, it remains 12% lower than the previous day’s high of $0.4355. However, since Trump’s victory in the 2024 US presidential election, Dogecoin has seen an impressive 142% increase.

Dogecoin’s recent surge has surpassed major cryptocurrencies such as Bitcoin, which rose nearly 30%, and Ethereum, which rose about 40% in the past week. Analysts attribute Dogecoin’s rally not only to positive market sentiment but also strong support from high-profile figures like Elon Musk. His endorsements and public support of Dogecoin and Trump have significantly fueled investor interest.

“It is a general trend that when Bitcoin rises, other altcoins rise as well. With this phenomenon, Doge and other coins have also performed well. However, Doge has mainly risen by 145% thanks to the close collaboration between Elon Musk and Donald Trump before and after the race. the US elections,” said Edul Patel, CEO of Mudrex.

Dogecoin’s strong performance reflects the optimism surrounding Trump’s pro-crypto stance and hopes for a more favorable regulatory environment. Other notable performers from the past week include Cronos (140%), Neiro (70%), Cardano (60%) and Bonk (60%).

Despite its surge, Dogecoin is still trading below its all-time high of $0.7376, reached during its 2021 peak.

(With input from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)