The cryptocurrency market is experiencing a historic year, with its total market capitalization recently hitting a record-breaking $3.5 trillion. Leading the charge is Bitcoin, which has more than doubled in value this year and now accounts for $1.9 trillion of the total market cap. However, Dogecoin, often regarded as a novelty token, has grabbed attention with a staggering 350% rise in 2024. Fueled by speculation and the influence of high-profile figures like Donald Trump and Elon Musk, Dogecoin’s unexpected resurgence has sparked debate about its long-term potential.
With Bitcoin nearing the $100,000 milestone, can Dogecoin emerge as a better investment by 2025? Let’s dive into the factors driving both cryptocurrencies and what the future might hold.
The Trump-Musk Effect: Driving Dogecoin’s Resurgence
Dogecoin’s connection to Elon Musk dates back to 2021, when the Tesla CEO called it his “favorite cryptocurrency” and promoted it through social media memes and a Saturday Night Live appearance. This led to a meteoric rise, culminating in a record high of $0.73 in May 2021. However, Dogecoin’s price collapsed by 92% in 2022 when investors realized Musk had no concrete plans to support the token’s long-term value.
Fast forward to 2024, Dogecoin was trading near its 52-week low until the U.S. Presidential Election on November 5. With Donald Trump winning the presidency and Elon Musk actively supporting his campaign, Dogecoin saw an immediate surge. Trump’s appointment of Musk as the head of the new Department of Government Efficiency (DOGE), an apparent nod to the cryptocurrency, further fueled speculation—even though there’s no indication that Dogecoin will play a role in this department.