Why did Dogecoin take a soaring flight up?

We all have heard of the anticipation that crypto will take over the world. But few may have ever thought something like this could happen. Elon Musk recently was appointed to President-elect Trump’s cabinet. He will now serve as the head of the new Department of Government Efficiency (DOGE). This had caused the once-obscure dogecoin to take over the global market.
Are you a newbie to the world of Dogecoin? Then, here is a crash course for you.

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The Making of Dogecoin

So how exactly did this cryptocurrency soar to the utmost peak of the government? Billy Markus and Jackson Palmer made Dogecoin. Both of them are software engineers. Markus is based in Portland, Oregon. He wanted to make a cryptocurrency that was accessible and lighthearted. He wanted it to be free of the complex and sometimes overwhelming world of Bitcoin.
On the other hand, Palmer was inspired by the viral Doge meme.

What is that, now? It was a Siba Inu dog with a comic sans text written in broken English. This suggested the name Dogecoin on Twitter. The playful energy of the meme, along with its humor and absurdity, arrested the attention of creators. They wanted this humorous aspect to be a part of their cryptocurrency.
Dogecoin blends the open-source code of Bitcoin and Litecoin. It was introduced in December 2013.

The Shiba Inu dog became its mascot. This established dogecoin’s status as the most friendly cryptocurrency on the internet. The design also made use of the humorous side of internet culture. This whimsy has drawn the attention of a lot of fans. What had initially been a joke had now turned into something much bigger than anyone had expected it to be!

Why is it important?

Today’s fragmented media landscape is much different than traditional concepts. Today, every little marketing effort is defined by social media, on-screen media, online platforms, and much more. Here, culture has become much more important than brand for people. Consumers are now looking to establish some personal connection with the products they buy, rather than just blindly trusting the brand for its own sake. That is why, today’s brands are looking to align cultural moments, movements, and experiences with their advertising efforts.

This is the only way for them to reach the heart of the audience. Younger consumers especially value brands that reflect their principles and viewpoints. They are also more likely to choose brands that are participating in their lives in some meaningful way.

So, investing in cultural engagement does not just give the brand more power. It also drives long-term positive results for the business. This is because cultural marketing helps to establish lasting relationships with customers. This leads to customers constantly thinking about the brand as part and parcel of their way of life.

Dogecoin is important not just because of its being a cultural phenomenon. It has also contributed a lot to cryptocurrency adoption. Unlike Bitcoin, which has a limited supply, Dogecoin has an unlimited supply. This design itself keeps the currency inflationary in nature. Many believe that it encourages its use for everyday exchange rather than being held as a store of value.
The simplicity and friendly branding of Dogecoin has made it very easily accessible to people who might be intimidated to try their hands in the world of cryptocurrency in other cases.

Role of Elon Musk

Elon Musk is the CEO of Tesla and Space X. He has done a lot to make Dogecoin soar up to the top. In 2019, he humorously mentioned that Dogecoin is his favorite among cryptocurrencies. That is how his fascination with Dogecoin had started. After that, he had time to tweet about Dogecoin again. This directly led to considerable fluctuations in the price of Dogecoin.

Musk’s comments about Dogecoin have been everything from memes to even statements made about the utility of the cryptocurrency. For example, he has referred to Dogecoin as “People’s Crypto”. He has also suggested that the cryptocurrency can be used to perform practical tasks. These can include payments in users’ daily lives. Musk also added more credibility to the status of Dogecoin as a cryptocurrency with an important announcement in 2021. He announced that Tesa would be using Dogecoin as an acceptable form of payment for some particular merchandise.

Department of Government Efficiency

On Tuesday, 12th November, Donald Trump announced that Elon Musk and the businessman Vivek Ramaswamy, who is a former rival for the Republican Party’s presidential nomination, would co-head a Department of Government Efficiency. This is being seen as a likely nod to Dogecoin.

Trump said that the department would help his government to do away with Government Bureaucracy. It would also help to slash unnecessary regulations and cut down unnecessary expenditures. He also said that the department would help to restructure Federal Agencies.
According to Trump, the group would provide advice and guidance from outside the Government. It would also partner with the White House and the Office of Management & Budget to drive large-scale structural reform.

Trump, however, has not specified how large this department will be, or how it will be funded.
Amid this post-election rally for cryptocurrency, dogecoin’s market value has now outrivaled that of companies like Ford and General Mills. This along with Musk’s promotion of Dogecoin through the years has contributed to its soaring market cap.

Conclusion

The soaring market cap of Dogecoin can be said to have arisen due to its great cultural appeal, boosted by the appointment of Elon Musk in Trump’s Department of Government Efficiency. The commercial leader has spoken in favor of cryptocurrency for a few years now. This along with Dogecoin’s relatable cultural appeal can be seen as the most important reasons for its soaring market cap.