Musk’s favorite cryptocurrency has risen in price by 280% in a month

The name of the new department was invented by one of Musk’s followers on the social network X. DOGE will be headed by the billionaire himself, together with former Republican presidential candidate Vivek Ramaswamy.

Donald Trump, who won the presidential election in early November, clarified that the department will not become part of the government apparatus, Musk and Ramaswami will work outside the government, providing the White House with “advice and recommendations” on how to “eliminate bureaucracy “. , reduce excessive regulation, reduce costs and reorganize federal agencies.”

Against this background, the price of Dogecoin began to actively grow. In the last 24 hours, the price of the token has increased by 3.9% to $0.41. Since mid-October, when the cryptocurrency was worth just over 10 cents, its price has skyrocketed 280.3%, to almost half a dollar. At its high of the day it was $0.426.

The rise in the price of Dogecoin is due to the general rebound in the cryptocurrency market after the victory of Trump, who promised to make the United States the “crypto capital of the planet.” However, in terms of growth rates, the meme token is even ahead of Bitcoin, which sets new records every day.

One of the reasons for the token’s rapid rise is the low transaction fees on the Dogecoin network, thanks to which the currency is often used for international transfers, said Michael Regan, head of cryptocurrencies at Bloomberg. “There are cases where people use it for money transfers, for example, sending money to their parents in Venezuela. Doing this with Dogecoin is much cheaper than with most other cryptocurrencies,” said the expert.

According to Regan, an important role in the success of Dogecoin is played by the “Musk effect”, whose love of memes combines harmoniously with the meme nature of the token. The billionaire has repeatedly called Dogecoin one of his favorite cryptocurrencies and even bought several tokens for his son.