Dogecoin (CRYPTO: DOGE) is no longer a sleeping dog. The globe’s most popular meme coin is now up 188% over the history 30 days, and a staggering 340% year to date. In the aftermath of Donald Trump winning the U.S. presidency, Dogecoin has been one of the hottest performers in the crypto economy.

What’s going on here? Is this yet another example of a meme coin exploding in worth due to hype and buzz, or is there something really behind Dogecoin’s recent resurgence? Let’s receive a closer look.

The Elon Musk narrative

Dogecoin’s profit to prominence has been fueled by the pro-crypto optimism surrounding the Trump administration. On the campaign trail, Trump made several pro-crypto promises. While none of them pertain specifically to Dogecoin, they do point to a recent pro-business regulatory regime for crypto, as well as the growing mainstream acceptance of crypto within the resource globe. All of that, of course, would be positive for Dogecoin.

But what really seems to be behind Dogecoin’s breakout is the unofficial back of billionaire Elon Musk, who has been tasked by Trump with creating a recent Department of Government Efficiency, or DOGE for short. As a outcome, “DOGE” has been making headlines in the traditional monetary media and on social media. Since DOGE is the ticker symbol for Dogecoin, it’s straightforward to view why crypto traders have been rushing to buy this meme coin.

While Musk has never officially said that Dogecoin would become a part of the upcoming of DOGE, the expectation is that somehow the tech billionaire will discover a way to integrate crypto into its way. Maybe Musk will assist make it feasible to pay your taxes in Dogecoin instead of dollars one day?

It’s the same benevolent of expectation that stoked a mini-rally in Dogecoin when Musk acquired Twitter (now known as X) in April 2022. Crypto bulls thought Dogecoin integration for Twitter would be coming soon, given Musk’s prior back for Dogecoin. More than two years later, it has thus far not materialized.

Coinbase joins the DOGE debate

If it were just Musk banging the drum for DOGE, it might be straightforward to ignore the latest Dogecoin hype. After all, we’ve seen this same narrative before with Twitter. But now a number of high-profile business leaders are starting to talk up DOGE. One of those is Brian Armstrong, CEO of Coinbase Global.

According to Armstrong, DOGE — the government entity, not the coin — is all about economic liberty, reducing the size of government and eradicating government waste. He has even suggested that DOGE might navigator to the abolishment of the person income levy or a recent constitutional amendment to limit government spending. So we’re not just talking about a few nips and tucks to save the government some money, we’re talking about huge, fundamental ideas that could influence the upcoming of America.

Why do people invest in meme coins?

That’s why I ponder Dogecoin’s recent rally is more than just a fad — it points to something significant happening within American population. And that’s not necessarily a excellent thing.

People invest in meme coins when they don’t have confidence in traditional assets. People buy into the narrative that meme coins will make them wealthy overnight because they have lost belief in the American aspiration. And they buy meme coins instead of fiat currencies (such as the U.S. dollar) because they have lost confidence in the “packed belief and financing of the federal government.”

That might sound like I’m making the case for investing in Dogecoin or other meme coins. I’m not. What I’m saying is that Dogecoin’s post-election rally is more than just a fun recent way to play the “Trump trade” in the crypto economy. It’s a symptom of a much bigger issue.

Meme coin mania

In 2025, look for meme coin mania to continue. Crypto investors will likely rotate out of a core throng of meme coins — such as Dogecoin, Shiba Inu, Pepe, Bonk and Floki — depending on which one has the greatest momentum. correct now, Dogecoin has all the momentum, but signs recommend Floki might be next, given its recent Coinbase listing.

Just one month before the election, tech billionaire Mark Cuban referred to investing in meme coins as essentially playing a game of musical chairs. It’s fun playing the game, as long as you don’t get stuck holding the incorrect meme coin when the music stops. If you’re still considering investing in Dogecoin, you should keep that in mind.

Dominic Basulto has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Coinbase Global. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content associate offering monetary information, analysis and commentary designed to assist people receive control of their monetary lives. Its content is produced independently of USA TODAY.

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