DOGE’s New Value Cycle: Political Traffic Potential

As Musk’s political career becomes more likely, DOGE is drawing on a new traffic potential – political traffic. So the upcoming election results could usher in a new value cycle for DOGE.

The MEME ecosystem has been very hot lately, so I have continued to follow and study it. Last week, many MEMEs gained several times or even dozens of times, but most of the stories I have seen and heard are still significant losses. Therefore, before the narrative, I still hope that we participate in the time to maintain rationality, must do a good job of wind control, strict implementation of the trading strategy, must not be survivor bias overwhelmed. Back to the topic, when researching the MEME track, I started with DOGE, the leader of this kind of program, and found that DOGE is experiencing some interesting things lately, and there are some insights that I would like to share with you. In a nutshell, DOGE is drawing on new traffic potential – political traffic – influenced by Musk’s increased likelihood of entering politics. So the upcoming election results could usher in a new value cycle for DOGE.

Looking back at DOGE’s history, traffic has been the driving force behind MEME’s upswing

Let’s start with a brief review of the history of DOGE’s development. Co-founded by Billy Markus and Jackson Palmer in December 2013, DOGE was inspired by the then-popular “Doge” Shiba Inu fandom. Initially, the founders created this light-hearted, community-driven token simply to satirize the market hype surrounding Bitcoin and other cryptocurrencies. It was developed to make cryptocurrencies more “friendly” and “approachable,” in contrast to the technical and financial nature of Bitcoin.

Unlike Bitcoin’s total of 21 million units, there is no upper limit on the supply of Dogcoin. It was originally designed to prevent long-term holders from hoarding the currency. From a technical standpoint, Dogcoin did not innovate significantly in its first few years of development, and the core protocol is very similar to Litecoin. However, its simplicity and community-driven culture provided it with some market base.

Much of Dogcoin’s growth has been due to its strong community support. in early 2014, the Dogcoin community raised funds through crowdfunding for the Jamaican bobsled team to help it compete in the Sochi Winter Olympics. This type of event allowed Dogcoin to gain a lot of media exposure in its early stages and become an internet cultural symbol.

Additionally, Dogcoin has been used for other charitable projects, such as water well construction projects for Africa and sponsorship events for NASCAR driver Josh Wise. While these events demonstrated the potential of Dogcoin as a payment tool, its price remained relatively low for a long time as it was still considered a “joke” currency.

Going back to 2017, as the cryptocurrency market exploded, the price of Dogcoin also rose for a while, although it failed to match the growth of mainstream cryptocurrencies such as Bitcoin and Ether. However, the post-2018 cryptocurrency winter brought the price of Dogcoin back down and for a time it was seen as an outdated fringe currency. It wasn’t until the start of 2020 that Dogcoin’s fortunes took a major turn. Elon Musk became its most prominent supporter, referring to Dogcoin in several tweets as “the people’s crypto” and calling himself the “Godfather of Dogcoin” (“DogCoin”). “DogeFather”. Whenever Musk tweets in favor of Dogcoin, its price fluctuates dramatically.

In April 2021, Musk even tweeted the famous “barking at the moon” picture of a dog, and the price of dog coins reached an all-time high of more than 0.70 dollars. Later in May 2021, after Musk hosted Saturday Night Live, the popularity of Dogcoin continued to grow and community support for it became even stronger, despite the fact that the market had sold off for a while. Of course, in a subsequent development, although Tesla did not accept Dogcoin payments, SpaceX announced that it accepts Dogcoin for payment of certain services, further strengthening the mainstream application of Dogcoin scenarios.

So we see that the dominant source of traffic in the DOGE ecosystem is undoubtedly Musk, and it’s highly likely that his new political career will bring new traffic potential – political traffic – to DOGE with the return of Trump. And last week’s near 30% rise in DOGE was a response to that backdrop.

Musk’s “Ministry of Political Efficiency” and DOGE’s Political Traffic Potential, Up Nearly 30% Weekly

In fact, it stems from Musk’s political initiative to create a program called the Department of Government Efficiency, or D.O.G.E., which he co-sponsored with former President Donald Trump. that aims to conduct a comprehensive financial audit of the federal government and make recommendations to reduce waste, fraud and unnecessary spending. Trump unveiled the program in a speech in New York, based on a proposal made by Musk at X. Musk said he was willing to participate in the program and would not ask for any compensation or title, emphasizing his desire to streamline government operations.

And the origin of the name D.O.G.E does come from the DOGE community. Musk replied to @Sir Doge Of the coin in his official X account on August 20, a name that should have inspired him to design the department’s name.

He also sent out a picture of his willingness to work on the project, which did show his intention to do so. Since then, KOLs on the Doge board have started to hype the topic. Trump also responded positively, announcing in a speech at the Economic Club of New York on September 6 that if elected president, he would work with Musk to create a commission on government efficiency, which was a formal response to D.O.G.E.

And he happened to be in a state where the outcome of the election was in the balance, so the potential impact of the proposal was not magnified, however, as we entered the month of October, due to the ineffective handling of hurricane relief, the team of Vice President Harris, who is the ruling party, suffered greatly, and there was a great reversal of support between the two parties. So the Trump trade is also starting to regain heat, which is why BTC came out of the woodwork last week.

And just this week, Musk on October 17th, Pennsylvania Town Hall speech, once again discussed the D.O.G.E program, we know that Pennsylvania as an extremely important swing state, in the election into the final moments of the attention is unprecedented, so any political campaign will achieve great exposure, which is the core reason for the push DOGE rose 30%.

So first let’s analyze whether Musk is likely to go into politics or if it’s just an election hype stunt. I think Musk from politics is very likely, we know that in this U.S. election, Musk firepower, firm support for Trump, in addition to the acquisition of Twitter, and use this to break the Democrats monopoly on U.S. mainstream media propaganda advantage, large donations for Trump’s campaign team, it is actively down to X as a position to publicize the support of Trump. And Trump also holds a great positive evaluation of this, but also in media interviews repeatedly expressed the hope that Musk can be invited to politics, into the cabinet or as an adviser.

Trump’s last term of office may know that the reason why Trump’s first term of office appears to be exceptionally difficult, stemming from the departure of his early political allies, greatly affecting the efficiency of his administration. We know that Trump’s success in the first term of the election, in fact, the main reason is the establishment of Hillary’s self-explosion, in the “mailgate” event after the exposure of a number of establishment traditional politicians in order to avoid repercussions, have fallen to the populist Trump’s side, and due to the Trump as a political vet, he precisely needs some with the political background of the establishment support. As Trump is a political novice, he precisely needed the support of some establishment politicians with political background to help him govern smoothly. However, when the election was successful, because the core interests of the establishment are based on globalization, which includes the military-industrial complex, new technologies, multinational capital management, etc., obviously contrary to populism, so after the success of the avoidance of disaster, the establishment has to draw a line with Trump. And in this election, Trump, on the one hand, has already accumulated enough political background, and on the other hand, he has also learned the lessons of the last round, and in the choice of political allies, he has extremely avoided the interference of the traditional establishment. This is why the young Pence was chosen as the vice presidential candidate. It is therefore highly probable that Musk, a new political vet with a wide range of influence, will be chosen for economic policymaking.

Then if the “government efficiency department” can be successfully landed, its streamlining of government departments is a very important part of Trump’s “small government” advocate, will certainly gain great attention, and we know that the essence of MEME is the traffic, this incident will certainly let the DOGE has a new channel for capturing traffic – political traffic. Imagine in January of 2025 The Department of Governmental Efficiency (D.O.G.E.) has initiated a 30% reduction in the number of employees in the government sector, which will provide DOGE with a great opportunity for exposure. So I think DOGE is going to be a can’t-miss Trump trade in the cryptocurrency industry, and I’m going to stay on top of it.

At present, with the DOGE price soaring, mining revenue has indeed increased significantly, and the LTC/DOGE miner’s revenue is at the top of the miner’s revenue charts, making many people believe that it’s a good time to get into the miner’s business.

（Source: AsicMinerValue）

According to AsicMinerValue’s data, the top three LTC/DOGE machines with the highest profit are Bitmain Antminer L9, ElphaPex DG 1 series and Bitmain Antminer L7.

The Antminer L9 is the most profitable, earning around $28.8 per day at $0.08/KWh, and the rise in DOGE has directly increased the returns from mining, especially in the case of Merged Mining shared with Litecoin (LTC), which has increased the returns from both cryptocurrencies, further boosting the attractiveness of the miners.

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