Dogecoin’s price has dropped significantly in recent months, returning to pre-election levels, despite initial gains following Donald Trump’s 2024 presidential victory. The cryptocurrency’s rise came as the newly inaugurated president introduced the Department of Government Efficiency (DOGE) in January 2025. This department, focused on modernizing federal technology and streamlining government operations, has given Dogecoin a significant platform.
Elon Musk, a vocal advocate for the coin, played a key role in its rise after Trump’s win. Following the November 2024 election, Dogecoin saw its price climb from around $0.15 to over $0.47, pushing its market cap above $60 billion. Musk’s involvement with the cryptocurrency has been extensive; he has been a prominent supporter for years, with his social media presence and public endorsements contributing to Dogecoin’s previous highs, such as the all-time peak of $0.73 in 2021.
Despite its initial rise, Dogecoin has lost momentum, falling by more than 40% over the last three months. As of writing, it trades at around $0.207. However, the coin remains among the top 10 largest cryptocurrencies by market capitalization, standing at $30.6 billion. Part of this decline is attributed to the cooling of investor enthusiasm, as the initial post-election euphoria has faded. The Department of Government Efficiency, designed to implement Trump’s “DOGE Agenda,” aims to maximize governmental productivity through technological modernization, and claims savings of $65 billion as of late February 2025.
The cryptocurrency could see renewed interest, especially with the rise of exchange-traded funds (ETFs). In January 2025, Bitwise filed with the SEC for a Dogecoin ETF, and Grayscale Investments launched the Dogecoin Trust. Analysts estimate a 75% chance that Dogecoin-related products will be approved in 2025, which could further boost its visibility in the market.
Meanwhile, Tesla, another of Musk’s ventures, has faced struggles. The company’s stock has fallen 30% since the 2024 election, and its global electric vehicle sales have significantly declined. These challenges, along with Musk’s growing association with Trump, have led to some investors pulling back. This was highlighted during a February 2025 interview with Trump and Musk on Fox News, which drew attention to their increasingly visible political alliance.
Despite these setbacks, Dogecoin remains a focus for Musk, with the DOGE still pushing for broader adoption of the coin within federal operations. Whether this continued support will lead to another surge in value remains to be seen.
