Dogecoin Plummets 35% Since Musk's D.O.G.E. Appointment

Dogecoin (DOGE) has experienced a significant decline since Elon Musk assumed his role at the Department of Government Efficiency (D.O.G.E) on January 20. At that time, the cryptocurrency was valued at $0.35. However, despite initial expectations of a rally fueled by Musk's influence, DOGE has since plummeted by 35%, currently trading at $0.23. This means that investors who allocated $1,000 to DOGE on January 20 would now see their investment reduced to $647.90, reflecting a loss of $353.

Musk's appointment to the D.O.G.E. was anticipated to boost Dogecoin's price, given his historical support for the meme coin. Many investors speculated that his high-profile role could bring increased attention and value to DOGE. However, the reality has been different. Musk's impact on DOGE's price action has waned in recent months, and the cryptocurrency has instead aligned with broader market trends. This shift underscores that market-wide volatility, rather than individual influencers, is now the primary driver of DOGE's price movements.

Despite the recent decline, DOGE has surged nearly 40% in the past week, sparking discussions about its potential to rival Bitcoin. This rally has reportedly led to an increase in Dogecoin millionaires, as per a report. Additionally, there is a growing sentiment within the market that DOGE could evolve into a next-generation store of value, potentially surpassing Bitcoin. Investor Raoul Pal has suggested that Dogecoin could become the "hardest currency on Earth," based on its price performance relative to Bitcoin over the past decade.