Dogecoin's market cap crosses $63 billion after 51% price surge

Reported by The Block: Dogecoin gained 51% in the last 24 hours to trade at $0.43, with a market capitalization of $63.5 billion.

Analysts say Dogecoin proponent Elon Musk’s involvement in the upcoming Trump administration is adding fuel to the memecoin’s surge.

Dogecoin experienced one of the highest crypto price gains in the past 24 hours, as the Donald Trump-led crypto rally shows no sign of slowing down. The dog-themed memecoin surged 51% to $0.43, which has led its market capitalization to reach $63.5 billion, according to The Block’s Dogecoin price page.

Just one month ago, Dogecoin had a market cap of around $16 billion. Its current price is at the highest point it has been since 2021, and it is now the sixth-largest cryptocurrency by market capitalization.

Dogecoin’s particularly significant gain appears to be linked to its unofficial ties with Tesla and SpaceX CEO Elon Musk. The world’s richest person, who is also the owner of social media platform X, is a long-time proponent of Dogecoin.

“[DOGE] received a bullish push due to the U.S. presidential election, which saw heavy involvement from Elon Musk,” said Nick Ruck, director at LVRG Research. “Speculators believe Musk's involvement in the new White House administration may boost the price of DOGE in the future, as the digital asset underperformed during the last bull cycle compared to other cryptocurrencies.”

Musk has spent tens of millions of dollars to help former President Trump’s re-election in November, appearing at Trump’s campaign rallies. The Tesla CEO even promised to give away $1 million each day until the election in support of Trump, which sparked calls for a probe.

“A recent mention of a potential 'Department of Government Efficiency (DOGE)' under a Trump administration, has further fueled [Dogecoin’s] rise,” Min Jung, crypto analyst at Presto Research, told The Block. Musk previously discussed creating such a government department to cut back on wasteful spending and complicated regulations.

Since Trump’s victory, Musk has been offering input on staffing decisions and stepped up to have a “significant role” in the upcoming administration, ABC News reported Tuesday, which stated that Musk’s involvement in the Trump office may be deeper than it seems.

“Dogecoin’s position as the leading memecoin, along with its broad recognition among retail investors, makes it especially compelling in today’s meme-driven market,” Jung added.