As Musk’s political aspirations seem increasingly probable, DOGE is tapping into a fresh wave of potential – political traffic. Thus, the forthcoming election outcomes may herald a new value cycle for DOGE.
The MEME ecosystem has been quite vibrant recently, leading me to continue my monitoring and analysis of it. Last week, many MEMEs witnessed multiple-fold increases, or even dozens of times the original values, yet the majority of narratives I have encountered still depict substantial losses. Therefore, ahead of the trends, I remain hopeful that we engage during this phase with a sense of rationality, diligently enforcing risk management, and rigorously adhering to our trading strategies, ensuring we are not swayed by survivor bias. Returning to the subject at hand, while examining the MEME sector, I began with DOGE, the frontrunner of this genre, and discovered that DOGE is currently encountering some intriguing developments, along with a few insights I would like to impart with you. In summary, DOGE is harnessing new traffic potential – political traffic – spurred by Musk’s heightened likelihood of entering the political arena. Hence, the imminent election results could pave the way for a new value cycle for DOGE.
Reflecting on DOGE’s Past, Traffic Has Fueled MEME’s Surge
Let’s commence with a concise overview of DOGE’s evolution. Established by Billy Markus and Jackson Palmer in December 2013, DOGE was motivated by the then-trending “Doge” Shiba Inu phenomenon. Initially, the creators devised this light-hearted, community-centric token solely to satirize the market frenzy surrounding Bitcoin and various cryptocurrencies. Its inception aimed to make cryptocurrencies more “friendly” and “accessible,” contrasting sharply with the technical and financial essence of Bitcoin.
In contrast to Bitcoin’s capped supply of 21 million coins, Dogecoin has no such limits on its issuance. It was originally crafted to deter long-term holders from stockpiling the currency. From a technical perspective, Dogecoin did not significantly innovate during its initial years, with its core protocol closely resembling that of Litecoin. Nevertheless, its straightforwardness and community-focused ethos afforded it a substantial market base.
A considerable proportion of Dogecoin’s advancement has stemmed from its robust community backing. In early 2014, the Dogecoin community crowdfundinged to support the Jamaican bobsled team in competing at the Sochi Winter Olympics. Such events enabled Dogecoin to receive ample media attention during its nascent stages and to evolve into a cultural internet icon.
Moreover, Dogecoin has been utilized for various charitable endeavors, including water well construction initiatives in Africa and sponsorships for NASCAR driver Josh Wise. While these events showcased Dogecoin’s potential as a payment medium, its price lingered at relatively low levels for an extended period, as it was still regarded as a “joke” currency.
Revisiting 2017, as the cryptocurrency marketplace experienced a surge, Dogecoin’s value also escalated temporarily, although it failed to keep pace with the growth of mainstream cryptocurrencies like Bitcoin and Ether. However, the cryptocurrency winter following 2018 plunged Dogecoin’s price once more, relegating it to the status of an outdated alternative currency for some time. It wasn’t until 2020 that Dogecoin’s fortunes notably shifted, with Elon Musk emerging as its most significant advocate, referencing Dogecoin in several tweets as “the people’s crypto” and dubbing himself the “Godfather of Dogecoin.” Each time Musk tweets positively about Dogecoin, its value experiences dramatic fluctuations.
In April 2021, Musk even tweeted the iconic “barking at the moon” dog image, resulting in dogecoin prices soaring to an unprecedented high of over $0.70. Subsequently, in May 2021, despite a temporary market pullback, the allure of Dogecoin persisted, and the community rallied around it even more robustly, particularly after Musk hosted Saturday Night Live. Notably, though Tesla did not approve Dogecoin transactions, SpaceX announced its acceptance of Dogecoin as payment for certain services, further enhancing mainstream applications for Dogecoin.
Thus, it is evident that a primary source of traffic within the DOGE ecosystem is indeed Musk, and there is a strong possibility that his forthcoming political endeavors will introduce new traffic potential – political traffic – to DOGE with Trump’s resurgence. Last week’s nearly 30% increase in DOGE was a reaction to this context.
Musk’s “Department of Political Efficiency” and DOGE’s Political Traffic Potential, Surging Nearly 30% Weekly
In actuality, this arises from Musk’s political venture to establish a program called the Department of Government Efficiency, or D.O.G.E., which he co-piloted with former President Donald Trump. This initiative aims to execute a comprehensive financial audit of the federal government and propose suggestions for minimizing waste, fraud, and unnecessary expenditures. Trump introduced the program during a speech in New York, which was based on a proposal made by Musk at X. Musk expressed his willingness to engage in this initiative without seeking any compensation or title, underscoring his aspiration to streamline governmental operations.
Moreover, the origin of the D.O.G.E name indeed hails from the DOGE community, as Musk responded to @Sir Doge Of the Coin on his official X account on August 20, a moniker that likely inspired him to designate the department’s name.
He further shared an image highlighting his eagerness to collaborate on the project, demonstrating his genuine intent to do so. Following this, influential figures on the Dogecoin board began to promote the topic. Trump also positively acknowledged this, announcing during a speech at the Economic Club of New York on September 6 that if re-elected, he would partner with Musk to establish a commission focused on government efficiency, which served as an official response to D.O.G.E.
He found himself in a situation where the election results were still uncertain, making the potential influence of the proposal less pronounced. However, as October unfolded, the inadequacies in managing hurricane recovery led to substantial struggles for Vice President Harris’s team, representing the ruling party, which faced a significant downturn in backing from both sides. Consequently, the Trump narrative is beginning to regain momentum, explaining why BTC emerged unexpectedly last week.
This past week, Musk, during his Pennsylvania Town Hall address on October 17th, revisited the D.O.G.E initiative. We recognize Pennsylvania as an incredibly significant swing state where the closing moments of the election capture attention like never before, which translates to substantial visibility for any political campaign. This was the fundamental cause for the surge in DOGE by 30%.
Now, let’s first evaluate if Musk is inclined to pursue a political career or if this is merely electoral theatrics. I believe Musk engaging in politics is highly plausible; we know that in this U.S. election, Musk’s clout and steadfast support for Trump, coupled with his acquisition of Twitter, have been utilized to disrupt the Democrats’ dominance in mainstream media propaganda. He’s made considerable donations to Trump’s campaign team and is actively leveraging X to express support for Trump. Moreover, Trump has voiced his strong favorable assessment of Musk and has often stated in media interviews his desire for Musk to join him in politics, whether in the cabinet or as an adviser.
Trump’s previous term was notably challenging, largely due to his early political allies exiting, which severely impacted his administration’s effectiveness. We understand that Trump’s electoral success during his first term was chiefly attributed to the self-destructive missteps of Hillary, particularly after the “mailgate” incident, prompting numerous established politicians to side with populist Trump to evade backlash. Yet, as a political newcomer, Trump desperately required the backing from some institutional politicians to manage effectively. However, once elected, due to the establishment’s core interests hinging on globalization—encompassing the military-industrial complex, innovative technologies, and multinational capital management—that starkly oppose populism, the establishment was obliged to separate from Trump after his initial victory. In the upcoming election, Trump has not only built enough political experience but has also incorporated lessons from his previous term, meticulously steering clear of traditional establishment interference in selecting his political allies. This explains why the young Pence was picked as his vice presidential candidate. Thus, it is quite likely that Musk, as a new political force with a vast influence, could be entrusted with economic policy decisions.
If the “Government Efficiency Department” is established successfully, its implementation of streamlined government operations will be a pivotal aspect of Trump’s “small government” ideology and will surely attract significant attention. It’s acknowledged that the essence of MEME derives from traffic; this development will undoubtedly create a fresh channel for DOGE—political traffic—to thrive. Envision the Department of Governmental Efficiency (D.O.G.E.) commencing a 30% workforce reduction in the government sector by January 2025, providing DOGE with a fantastic opportunity for visibility. Therefore, I believe DOGE is poised to become an essential Trump trade within the cryptocurrency sector, and I’ll be closely monitoring it.
Currently, as DOGE prices surge, mining revenues have demonstrably increased, placing LTC/DOGE miners at the forefront of revenue generation, leading many to perceive it as an opportune moment to enter the mining sector.
（Source: AsicMinerValue）
Data from AsicMinerValue indicates that the top three LTC/DOGE machines with the highest profitability are Bitmain Antminer L9, ElphaPex DG 1 series, and Bitmain Antminer L7.
The Antminer L9 stands out as the most lucrative option, generating approximately $28.8 daily at a rate of $0.08/KWh, with the increase in DOGE directly enhancing mining returns, particularly with Merged Mining shared with Litecoin (LTC), which has amplified profits from both cryptocurrencies, further elevating miners’ appeal.
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