Elon Musk's D.O.G.E. Department Triggered a Surge in Dogecoin's Price

The social media activity and corporate decisions of the Tesla and SpaceX CEO have repeatedly influenced the price and popularity of the meme coin.

Elon Musk has played a key role in shifting Dogecoin from a parody to a speculative digital asset. His social media activity and corporate decisions have repeatedly influenced the price and popularity of the meme coin. In 2025, his involvement reached a new level with the launch of a U.S. government agency named D.O.G.E., short for the Department of Government Efficiency.

After the launch of the Department of Government Efficiency (D.O.G.E.) website, Dogecoin’s price surged by 13% within 15 minutes. It rose from $0.33 to $0.40, reversing earlier losses and notching a 20% rebound from its session low.

The department, established by President Donald Trump and headed by Elon Musk, aims to reduce federal spending and bureaucracy. The acronym D.O.G.E., mirroring the cryptocurrency’s name, and the inclusion of its logo on the government site sparked discussion about the blending of internet culture with official government initiatives.

However, the reported gains were short-lived. From January 21 to March 31, addresses holding $1 million to $9.99 million in DOGE dropped by 40.21%. At the same time, wallets with over $10 million fell from 400 to 212, denoting a 47% decrease.

Overall, Dogecoin millionaire addresses declined by 41% in just over two months, according to Finbold.

At the beginning of December 2013, two software engineers, Jackson Palmer and Billy Markus, created Dogecoin as a parody of the cryptocurrency hype at the time. They chose the Shiba Inu meme, commonly known as “Doge,” to represent the coin. Their intention was to poke fun at the absurdity of the nascent crypto space.

But even as a joke, Dogecoin managed to garner attention and a following online. It was later picked up by Elon Musk, who began tweeting about it in 2020. From simple mentions to playful memes, Musk's posts frequently boosted Dogecoin's visibility and drove discussion about the token.

In April 2019, Musk stated on Twitter that Dogecoin was his “favorite cryptocurrency.” Within two days, its price doubled from $0.002 to $0.004.

“Elon's involvement helped shift the narrative of Dogecoin from a satirical internet token to a speculative asset class by bestowing it with perceived legitimacy and providing it with entertainment value,” said Darren Voloder, a lecturer in entrepreneurship and innovation at the University of Sydney Business School. He added that Elon Musk helped make Dogecoin a “cultural product with real economic consequences.”

By early 2021, the market's response to Musk's posts on Dogecoin had become even more pronounced. When Musk tweeted that Dogecoin was “the people's crypto,” its trading volume increased by more than 50% overnight. However, this same influence also made Dogecoin highly volatile.

On May 8, 2021, Musk appeared on Saturday Night Live. When he described Dogecoin as "a hustle," its price tumbled by more than 33% within a few hours.

Dogecoin lacks a clear development roadmap, provides no yield or built-in utility, and depends heavily on market sentiment. In such conditions, the price can shift dramatically based on the actions of a single influencer—particularly one with millions of followers and significant financial power.