Recently, the MEME ecology has been very hot, so the author has also continued to pay attention to and study the relevant knowledge. Last week, many MEMES achieved several times or even dozens of times the increase, but most of the stories I have seen and heard are still huge losses. Therefore, before narrating, I still hope that everyone will maintain rationality when participating, must do a good job in risk control, strictly implement the trading strategy, and must not be confused by the survivor bias.
Returning to the topic, when studying the MEME track, the author started from the leader of such projects, DOGE, and found that DOGE is experiencing some interesting things recently, with some insights, and hopes to share them with everyone. In general, affected by the increased possibility of Musk's political involvement, DOGE is absorbing new flow potential - political flow. Therefore, the upcoming election results may usher in a new value cycle for DOGE.
Reviewing the development history of DOGE, flow is the driving force for the rise of MEME.
Let's briefly review the history of DOGE's development. Dogecoin was co-founded by Billy Markus and Jackson Palmer in December 2013, inspired by the then-popular "Doge" Shiba Inu meme.
Initially, the founders were just trying to satirize the market hype of Bitcoin and other cryptocurrencies, and established this relaxed, community-driven token. Its development purpose is to make cryptocurrencies more "friendly" and "approachable", in contrast to the technicality and financiality of Bitcoin.
Unlike Bitcoin's total supply of 21 million, Dogecoin has no supply limit. The initial design was to avoid long-term holders hoarding the currency. From a technical perspective, Dogecoin did not make major innovations in the first few years of its development, and its core protocol is very similar to Litecoin. However, its simplicity and community-driven culture have provided it with a certain market foundation.
Dogecoin's development has largely benefited from its strong community support. In early 2014, the Dogecoin community raised funds through crowdfunding to help the Jamaican bobsled team participate in the Sochi Winter Olympics. Such events have gained Dogecoin a lot of media exposure in the early stages, making it a symbol of Internet culture.
In addition, Dogecoin has also been used for other charitable projects, such as funding water wells in Africa and sponsoring NASCAR driver Josh Wise. Although these events have demonstrated Dogecoin's potential as a payment tool, its price has remained relatively low for a long time, as it is still seen as a "joke" currency.
Tracing back to 2017, with the outbreak of the cryptocurrency market, the price of Dogecoin also rose for a time, although it was unable to match the growth of mainstream cryptocurrencies such as Bitcoin and Ethereum. However, the cryptocurrency winter after 2018 caused the price of Dogecoin to fall back, and it was once seen as an outdated marginal currency. It wasn't until 2020 that Dogecoin's fate underwent a major change.
Elon Musk has become its most famous supporter, mentioning Dogecoin in his tweets several times, calling it "the people's crypto" and referring to himself as the "DogeFather". Whenever Musk tweets in support of Dogecoin, its price experiences violent fluctuations.
In April 2021, Musk even tweeted the famous "Barking at the Moon" Doge image, and the price of Dogecoin reached a new historical high, breaking $0.70.
After that, in May 2021, although the market once sold off Dogecoin after Musk hosted Saturday Night Live, its popularity did not diminish, and the community's support for it became even stronger. Of course, in the subsequent development, although Tesla did not accept Dogecoin as a payment, SpaceX announced that it would accept Dogecoin for payment of certain services, further enhancing Dogecoin's mainstream application scenarios.
Therefore, we find that the main source of traffic in the current DOGE ecosystem is undoubtedly Musk, and it is very likely that it will be accompanied by Trump's return and the opening of a new political career, which will bring new traffic potential - political traffic - to DOGE. The nearly 30% increase in DOGE last week was a response to this background.
The weekly increase of nearly 30%, Musk's "Department of Government Efficiency" and the political traffic potential of DOGE
In fact, this stems from an initiative by Musk in the political sphere, namely the establishment of a department called the "Department of Government Efficiency", abbreviated as D.O.G.E., which is an initiative he launched jointly with former President Donald Trump, aimed at conducting a comprehensive financial audit of the federal government and making recommendations to reduce waste, fraud, and unnecessary spending.
Trump announced the plan during a speech in New York, based on Musk's suggestion on X. Musk said he was willing to participate in this plan and would not demand any compensation or title, emphasizing his determination to simplify government operations.
The name D.O.G.E. is indeed derived from the Doge community. Musk replied to @Sir Doge Of the Coin on his official X account on August 20, and this name may have inspired the design of the department's name.
He has also issued a picture expressing his willingness to serve, which indeed demonstrates his intention. Since then, the KOLs of the Doge sector have started to hype up this topic. Trump also responded positively, announcing during a speech at the New York Economic Club on September 6 that if elected president, he would jointly establish a government efficiency commission with Musk, which is equivalent to a positive response to D.O.G.E.
At that time, the election results were in a state of intense focus, so the potential impact of the proposal was not amplified. However, after entering October, due to the ineffectiveness in dealing with hurricane relief, the vice president Harris team, as the ruling party, was greatly affected, and the support rates of both sides also experienced a huge reversal. Therefore, Trump trading also began to regain momentum, which is why BTC saw a bloodsucking trend last week.
And just this week, Musk discussed the D.O.G.E plan again in his speech at the Pennsylvania City Hall on October 17. We know that Pennsylvania, as a crucial swing state, has received unprecedented attention as the election enters its final moments, so any political propaganda activities will gain enormous exposure, which is also the core reason for the 30% surge in DOGE.
So first, let's analyze whether Musk is likely to enter politics or if it's just an election hype. I believe Musk's entry into politics is very likely. We know that in the current U.S. presidential election, Musk has gone all out, firmly supporting Trump. In addition to acquiring Twitter and thus breaking the Democratic Party's monopoly on mainstream media propaganda advantages, he has also actively participated, using X as a platform to promote his support for Trump.
And Trump has also expressed a very positive evaluation of this, and has repeatedly expressed in media interviews that he hopes to invite Musk to enter politics, join the cabinet or serve as an advisor.
Those of you who have some understanding of Trump's previous term may know that the reason why his administration was unusually difficult during the first term was due to the defection of his early political allies, which greatly affected his governance efficiency.
We know that the main reason for Trump's success in the first term election was the self-explosion of the establishment's Hillary. After the "email gate" incident was exposed, a group of establishment traditional politicians defected to the populist Trump in order to avoid being affected. And because Trump was a political novice at the time, he precisely needed the support of some establishment figures with political backgrounds to help him govern smoothly.
However, after the election was successful, since the core interests of the establishment are based on globalization, including the military-industrial complex, new technology, and transnational asset management, it is obviously at odds with populism. Therefore, after avoiding disaster, the establishment figures have distanced themselves from Trump. In this election, Trump has accumulated enough political background on the one hand, and on the other hand, he has also learned the lessons of the previous round, and is extremely avoiding the interference of traditional establishment in the choice of political allies.
This is why he chose the young Pence as the vice presidential candidate. Therefore, in the formulation of economic policies, it is highly likely that he will choose a new political novice with widespread influence, Musk.
If the "Department of Government Efficiency" can be successfully implemented, its proposal to streamline government departments is a very important part of Trump's "small government" proposition, which will certainly attract great attention. And we know that the essence of MEME is traffic, this event will certainly give Doge a new traffic capture channel - political traffic.
Imagine in January 2025. The U.S. Department of Government Efficiency (D.O.G.E) initiates a 30% reduction in government departments, which will certainly provide a great exposure opportunity for Doge. Therefore, I believe that Doge will be a must-watch hotspot in the crypto currency industry's "Trump trade", and I will also keep an eye on it.
