Meme to Market Power: How Politics and Community Built DOGE’s Rise

Dogecoin, the meme-inspired cryptocurrency, has once again captured market attention with significant price movements tied to its association with high-profile events and individuals. On November 13, 2024, the price of Dogecoin surged by nearly 20% following Donald Trump’s announcement that Elon Musk would lead the newly formed “Department of Government Efficiency” (DOGE). This event marked a continuation of a broader upward trend that had already seen the coin rise by 153% since the U.S. presidential election. The surge came as Trump used the term “DOGE” in reference to the department, reinforcing the coin’s cultural and political relevance. In the same period, Bitcoin saw a more modest gain of 30%.

This price rally placed Dogecoin ahead of XRP (Ripple) to become the sixth-largest cryptocurrency by market capitalization. However, the coin faced a sharp correction on April 7, 2025, when it dropped more than 20% following renewed tensions over U.S. trade policy. The volatility reflects the speculative nature of the market and the influence of macroeconomic events on crypto prices. The price rebounded later in July after the U.S. House of Representatives passed a stablecoin regulatory bill, with the coin rising by over 10% in response.

Dogecoin’s journey to the mainstream began in 2013, when it was created as a lighthearted alternative to Bitcoin. The cryptocurrency was inspired by the viral “Doge” meme featuring a Shiba Inu dog, which had gained popularity in internet culture. The coin was developed by Billy Markus and Jackson Palmer, who combined the meme with the idea of creating a digital currency rooted in humor and community-driven values. Unlike Bitcoin, Dogecoin was designed with an infinite supply—100 billion coins initially issued, with 5 billion added annually—making it more accessible and less scarce than other major cryptocurrencies.

The early adoption of Dogecoin was driven by its practical applications, particularly in tipping and microtransactions. By 2014, the coin had already supported charitable initiatives, including fundraising for the Jamaican bobsled team and clean water projects in Kenya. Its appeal continued to grow, especially after prominent figures like Elon Musk began endorsing it on social media. Musk’s influence was significant; when he announced that Dogecoin would be used to fund the first lunar mission by SpaceX’s DOGE-1 satellite in 2021, the coin saw a dramatic price surge. Musk also popularized the coin through a Twitter poll asking which currency should represent Earth’s future, with over 70% of respondents selecting Dogecoin.

Despite its popularity, Dogecoin has faced legal and regulatory scrutiny. In 2022, a lawsuit was filed against Musk and his companies, including Tesla and SpaceX, by investor Keith Johnson, who accused them of orchestrating a fraudulent scheme that artificially inflated Dogecoin’s price before a steep decline. The lawsuit was later expanded to include seven additional plaintiffs and six more defendants. Musk has consistently denied these allegations, stating his continued support for Dogecoin.

The coin’s performance in 2025 was shaped by broader geopolitical and economic factors. While it experienced a sharp decline in early April due to global trade tensions, it bounced back after the U.S. legislative developments in July. These movements highlight the sensitivity of the cryptocurrency market to regulatory and political shifts, especially for coins with strong ties to public figures and social media trends.

Analysts remain cautious about Dogecoin’s long-term prospects. While the coin’s community-driven ethos and low transaction fees continue to attract users, its infinite supply and lack of technological innovation pose challenges. As of 2025, the top 10 Dogecoin wallets hold nearly 45% of the total supply, with one wallet alone controlling 28.51% of the circulating coins. This concentration of ownership raises concerns about centralization and price manipulation, which could limit the coin’s appeal in a more mature cryptocurrency market.

Dogecoin’s future will likely depend on its ability to adapt to evolving market conditions and regulatory frameworks. As the cryptocurrency continues to evolve from a meme-driven joke to a more serious financial asset, its trajectory will be closely watched by investors, developers, and regulators alike.