Author: Wenser, Odaily Planet Daily
After the "Trump effect" swept through the cryptocurrency market, driving the BTC price close to $90,000, the "Musk effect" has also arrived with a bang. As the former "DOGE father", the most driven is naturally the "Meme No. 1 coin" - DOGE. According to Coingecko website data, DOGE's market capitalization has skyrocketed in just two days, quickly surpassing XRP and USDC, and is currently ranked sixth in the cryptocurrency market with a market capitalization of over $63 billion.
Odaily Planet Daily will provide a brief analysis and explanation of DOGE's recent trends and the future development of Memecoins in this article for readers' reference.
The "Meme No. 1 Coin": The Meme Coin King Across 4 Major Cycles
As we mentioned in our previous article "A 3-Minute Overview of the History of Meme Coins: Past and Future":
The prototype of DOGE, Kabosu, began to be widely disseminated on the globally renowned online forums 4chan and Reddit in the summer of 2013. Riding on this cultural wave, Jackson Palmer and Billy Markus released Dogecoin (DOGE) on the Bitcointalk forum on December 8, 2013 - it was the first cryptocurrency based on an Internet Meme.
The success of Dogecoin has brought about a new class of coins that are unconventional, humorous, and satirical, using celebrities (such as Kanye West, Max Keiser), animals (such as Pandacoin), or trying to appeal to specific groups as Memes. These were all launched on the "Alternative Cryptocurrency" sub-forum of Bitcointalk using the Proof-of-Work (PoW) mechanism. "Specifications" became less important, while "Meme" became more important.
From its launch in 2013 to the passing of the DOGE prototype Kabosu the Shiba Inu in May this year, spanning nearly 4 cryptocurrency cycles (note: with a 4-year boundary, divided into 2012-2015, 2016-2019, 2020-2023, 2024 ~), DOGE has always been an indispensable part of the cryptocurrency market. In particular, it has become the oldest Meme coin in the current cycle known as the "Meme Coin SuperCycle", and is also one of the few Meme coins in the top 10 cryptocurrency market cap, with its historical status and market performance equally important. Specifically, its value is manifested in 3 aspects:
First, DOGE is the "synonym" of Meme coins
Undoubtedly, if there is a Meme coin project with the widest dissemination, the greatest impact, and the highest recognition, it is DOGE. This is not only due to its long history and the positive support of the currently hot "Trump fan leader" Musk, but also due to its highly viral and low-threshold "primitive Meme" - the Shiba Inu Kabosu. As the saying goes: "Who would refuse a cute and adorable dog?" One of the "3B principles" revered in the advertising industry is Beast - animals, and this is a clear case of DOGE.
In other words, when new market participants enter, the best choice facing countless newcomers is DOGE. This can be seen from the recent surge in Google searches for Bitcoin - if Bitcoin is the first flag that can be seen when entering the cryptocurrency, then DOGE is the "key" to entering the cryptocurrency world.
Secondly, DOGE is the "ceiling" of Meme coins
From the perspective of the "ceiling" of Meme coins, DOGE's market capitalization once reached around $88.8 billion (according to Coingecko data, occurring in early May 2021), and its price once soared to around $0.73. Compared to other cryptocurrency projects with market capitalizations in the hundreds of billions or even trillions of dollars, DOGE can be considered a "miracle in the industry".
And with the advent of the new cryptocurrency cycle, buoyed by the good news of Trump's election as the new US president and Musk's joining the Trump administration to participate in political and economic decision-making, DOGE's subsequent development momentum is expected to break through its previous high, with a market capitalization of $100 billion within reach, at which point it will once again become the "most eye-catching Meme coin" in the cryptocurrency.
Similarly, DOGE has also set a great example for the currently highly active Meme coin projects in the market such as PEPE, FLOKI, and BONK - "Meme coins can also compete with a host of value coins and VC coins without falling behind", which is crucial for cryptocurrency players, especially new entrants, who are in urgent need of building confidence and even faith in Meme coins.
Thirdly, DOGE is the "wind vane" of Meme coins
The reason why DOGE is seen as the wind vane of Meme coins is that it has recently become the "leader" of the Meme coin rebound -
On October 31, on the eve of the US election, Musk posted that "our system is inverted, making it difficult for high-quality talent to legally enter the US, while criminals can easily enter the US illegally. Why is illegal entry easier than legal entry? Trump and DOGE will solve this problem."(Odaily Planet Daily note: DOGE can refer to the Meme coin DOGE, as well as the government efficiency department D.O.G.E. that Musk has mentioned several times before.)
On November 2, Robinhood Crypto EU announced that Robinhood Crypto now supports DOGE token transfers, as well as deposits and withdrawals.
On November 6, the dust settled on the US election, and Trump, whom Musk had generously assisted, successfully won the US election. A certain smart money quickly increased its holdings by 6.01 million Ethereum Meme coin DOGE, with a total unrealized profit of $2.045 million; at the same time, DOGE broke through $0.2 USDT that day, with a 24-hour increase of 19.18%, and has continued to rise since then, with its market capitalization soaring from the previous $16 billion to nearly $64 billion now, a four-fold increase in just one month.No wonder evenBloomberg exclaimed that "Trump's election has sparked a speculative frenzy in the crypto market, with DOGE up about 50% in the last 5 days, outperforming BTC".
At the same time, a host of dog-themed Meme coins, including DOGE, have been riding the wave, with their recent price performance quite eye-catching.
Furthermore, as we mentioned in our article "A Carnival for All, with a Market Cap Ratio of Only 2.5%, How Much Room is Left for the Meme Coin Market?": " When DOGE reached its market capitalization high, Bitcoin was only around $57,361; the overall cryptocurrency market capitalization was only $2.3 trillion.....In the future, with the euphoric market sentiment, 1-3 Meme coin projects with a market capitalization of $100 billion are entirely possible, and the overall Meme coin market capitalization may even break through $300-500 billion."
The Future of Meme Coins: Sailing to the Stars with the Help of Market Trends
Looking at past performance, although Meme coins are currently surging, the Meme coin super cycle that belongs more to cryptocurrency players is still in a state of preparation, and this is naturally inseparable from the many driving forces that have a huge impact on the market - policy benefits, capital flows, information dissemination, and actual use cases.
In terms of policy benefits, the inauguration of Trump will help shape a "crypto-friendly government." In the short term, the "Trump effect" directly stimulates the Bitcoin price to break new highs consecutively, while in the long run, its most important value lies in the creation and stable operation of a "crypto-friendly government." According to a report by Galaxy, "various exemption measures favorable to the crypto industry are likely to be introduced soon under the Trump administration." Standard Chartered Bank also stated in a research report that the Republican Party's landslide victory will enable the new government to implement positive policies for the digital asset sector, which could cause the total market capitalization of cryptocurrencies to swell to $10 trillion by the end of 2026.
In terms of capital flow, the inflow of funds into Bitcoin spot ETFs continues, with BlackRock's Bitcoin spot ETF IBIT surpassing its gold ETF IAU in just 10 months; and with the continued stimulus of the Federal Reserve's interest rate cuts, it is believed that more funds will flow into the crypto market, boosting the Meme coin sector, including Doge, as well as the overall market capitalization of cryptocurrencies.
In terms of information dissemination, as the "Doge Father," Musk naturally carries a halo effect, able to continuously create and generate high global attention. At the same time, traditional search engine channels like Google, as well as emerging AI application platforms like Grok and ChatGPT, will provide convenient sources and channels for the continuous production and dissemination of Meme coin-related information.
In terms of actual use cases, on the one hand, the charitable donation use cases of Meme coins have gained increasing attention and use, with the ups and downs of the Meme coin MOODENG named after the viral TikTok influencer Hippopotamus, and the series of absurd events such as the project "sending money" to Ethereum founder Vitalik and "calling on him not to dump the market, we'll do charity ourselves," which have provided a vivid annotation for the "actual value" of Meme coins; on the other hand, with the continued breakthrough of Meme coins, similar use cases like Tesla's support for Doge token payments will further develop. In addition, the development of the Solana ecosystem Meme coin sector is also worth close attention - previously, the Solana ecosystem Meme coin project WEN spent a considerable amount to acquire the cat-themed account @ShouldHaveCat with over 4.03 million followers on the X platform; another Meme coin MEW has also recently surpassed a $1 billion market cap, hitting a new high.
Summary
Finally, to return to Doge, the owner of its prototype Kabosu has also recently adopted another Shiba Inu named Neiro, who has also stirred up the Meme coin sector and attracted high attention from the cryptocurrency industry due to the "case-sensitive dispute." As for Doge, its attention group is not only in the cryptocurrency industry, but also closely related to "traffic centers" like Musk.
And after Trump takes office as President of the United States, Musk's Tesla and SpaceX are expected to receive more government orders and a series of policy benefits, at which time Doge may truly embark on its "space journey," leading a group of Meme successors to the distant stars and seas.
