The New Value Cycle of DOGE: Political Traffic Potential and Musk's Department of Government Efficiency

Recently, the MEME ecosystem has been very popular, attracting widespread attention. Last week, many MEME tokens achieved multiples or even tens of times increases, but most participants still faced huge losses. Therefore, it is crucial to remain rational when participating, implement risk control, strictly follow trading strategies, and not let survivor bias affect judgment.

In researching the MEME track, starting with the leading project DOGE, it is found that it is experiencing some interesting changes. Overall, influenced by Musk's potential involvement in politics, DOGE is gaining new traffic potential—political traffic. The results of the upcoming elections may bring a new value cycle for DOGE.

A Review of DOGE's Development History: Traffic is the Driving Force Behind MEME's Rise

DOGE was created in December 2013 by Billy Markus and Jackson Palmer, inspired by the popular "Doge" Shiba Inu meme at the time. The founders' initial purpose was to parody the market hype surrounding Bitcoin and other cryptocurrencies, creating this lighthearted, community-driven token. It aims to make cryptocurrency more "friendly" and "accessible," in contrast to the technical and financial nature of Bitcoin.

Unlike Bitcoin's total supply limit of 21 million coins, DOGE has no supply cap. It was initially designed to prevent long-term holders from hoarding. Technically, DOGE did not undergo significant innovations in its early development, and its core protocol is very similar to Litecoin. However, its simplicity and community-driven culture provide it with a certain market foundation.

The development of DOGE has largely benefited from strong community support. In early 2014, the DOGE community raised funds through crowdfunding to help the Jamaican bobsled team participate in the Sochi Winter Olympics. Such events garnered significant media exposure for DOGE in its early stages, making it a symbol of internet culture.

In addition, DOGE is also used for other charitable projects, such as the construction of water wells in Africa and sponsorship activities for NASCAR drivers. Although these events showcase the potential of DOGE as a payment tool, its price has remained relatively low for a long time, as it is still seen as a "meme" currency.

In 2017, with the explosion of the cryptocurrency market, the price of DOGE also saw a rise, but it failed to compare with the increase of mainstream cryptocurrencies. The cryptocurrency winter after 2018 caused the price of DOGE to fall back, and it was once regarded as an outdated fringe currency. It wasn't until 2020 that the fate of DOGE underwent a significant change. Elon Musk became its most famous supporter, mentioning DOGE multiple times on social media, calling it "the people's cryptocurrency" and referring to himself as the "Dogecoin Godfather." Whenever Musk made statements supporting DOGE, its price would experience violent fluctuations.

In April 2021, Musk released the famous "Moon Landing Bark" DOGE image, causing the price of DOGE to reach an all-time high, surpassing $0.70. In May 2021, despite a brief sell-off of DOGE after a well-known variety show hosted by Musk, its popularity did not wane, and community support became even stronger. Although Tesla did not accept DOGE for payments, SpaceX announced that it would accept DOGE for certain services, further enhancing DOGE's mainstream application scenarios.

Therefore, in the current DOGE ecosystem, the primary source of traffic is undoubtedly Musk. And he is highly likely to start a new political career alongside Trump's return, which will bring new traffic potential to DOGE—political traffic. Last week, DOGE's nearly 30% increase was a response to this background.

Weekly increase of nearly 30%: Musk's "Political Efficiency Department" and the political traffic potential of DOGE

This stems from Musk's political initiative to establish the "Department of Government Efficiency," abbreviated as D.O.G.E. This plan is a joint initiative he launched with former President Trump, aimed at conducting a comprehensive financial audit of the federal government and proposing suggestions to reduce waste, fraud, and unnecessary expenditures. Trump announced the plan during a speech in New York, which was based on Musk's suggestions made on social media. Musk stated that he is willing to participate in this plan and will not seek any compensation or title, emphasizing his determination to simplify government operations.

The inspiration for the name D.O.G.E indeed comes from the DOGE community. Musk replied to a community member's content on August 20, which may have inspired the naming of that department. Subsequently, he further issued an image expressing his willingness to serve in this regard, showcasing his intention. Since then, DOGE-related opinion leaders have begun to hype 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 work with Musk to create a Government Efficiency Committee, which is equivalent to a formal positive response to D.O.G.E.

At that time, the results of the election were in a state of tension, and the potential impact of the proposal was not amplified. However, as October approached, due to the government's ineffective handling of hurricane relief, the ruling party's vice president's team was greatly affected, and the support rates for both sides saw a significant reversal. As a result, transactions related to Trump also began to regain popularity, which is why Bitcoin experienced a bullish trend last week.

This week, Musk once again discussed the D.O.G.E plan during his town hall speech in Pennsylvania on October 17. As a crucial swing state, Pennsylvania is receiving unprecedented attention as the election approaches its final moments, so any political campaign will achieve significant exposure, which is also the core reason for the 30% increase in DOGE.

So is it possible for Musk to enter politics, or is it just an election publicity stunt? I believe it is very likely that Musk will enter politics. In this U.S. election, Musk is fully committed, firmly supporting Trump. In addition to acquiring a certain social media platform and using it to break the Democratic Party's monopoly on the propaganda advantages of mainstream media in the U.S., he has also made significant donations to Trump's campaign team and actively taken to the field, using that platform as a base to promote his support for Trump. Trump has also expressed great positivity about this and has repeatedly stated in media interviews that he hopes to invite Musk to enter politics, join the cabinet, or serve as an advisor.

Those who understand Trump's previous term may know that the reason Trump appeared unusually difficult during his first term in office stemmed from the betrayal of his early political allies, which greatly affected his governance efficiency. Trump's electoral success in the first term was primarily due to the self-destruction of establishment candidates. After the "Email Gate" incident was exposed, a group of traditional establishment politicians turned against Trump, the populist, to avoid being implicated. As a political outsider, Trump needed support from some politically experienced establishment figures at that time to help him govern smoothly. However, after winning the election, since the core interests of the establishment were based on globalization—including the military-industrial complex, new technologies, and multinational asset management—it was clearly contrary to populism. Therefore, after successfully avoiding disaster, the establishment figures distanced themselves from Trump.

In this election, Trump has on one hand accumulated enough political background, and on the other hand learned from the last round of lessons, extremely avoiding traditional establishment interference in the selection of political allies. This is why he chose the young Pence as the vice presidential candidate. Therefore, it is very likely that a new political outsider with broad influence like Musk will be chosen for the formulation of economic policies.

If the "Department of Government Efficiency" can be successfully established, its proposal to streamline government departments is a crucial part of Trump's "small government" agenda and will undoubtedly attract significant attention. We know that the essence of MEME is traffic, and this event will inevitably provide DOGE with a new channel for traffic capture—political traffic. Imagine in January 2025, the U.S. Department of Government Efficiency ( D.O.G.E ) initiates a 30% reduction in government department staff; this will certainly provide excellent exposure opportunities for DOGE. Therefore, DOGE will be an indispensable hotspot in the cryptocurrency industry related to Trump trading, worthy of continuous attention.