MEME ecosystem is booming, DOGE may迎新价值周期

Recently, the MEME ecosystem has performed remarkably well, with multiple projects achieving several times or even tens of times in gains. However, most participants still suffered significant losses. Therefore, it is crucial to participate rationally, implement strict risk control, and adhere to trading strategies, and do not be blinded by survivor bias.

While researching the MEME sector, starting with the leading project DOGE, I found that it is experiencing some interesting changes. Influenced by Musk's potential political involvement, DOGE is attracting new traffic potential—political traffic. The upcoming election results may bring a new value cycle for DOGE.

DOGE Development History: Traffic-Driven MEME Surge

DOGE was created in December 2013 by Billy Markus and Jackson Palmer, inspired by the popular Shiba Inu meme. The founders' original intention was to satirize the hype of the cryptocurrency market and create a light-hearted, community-driven token to make cryptocurrency more accessible.

Unlike Bitcoin, DOGE has no supply limit, designed to avoid hoarding. Technically similar to Litecoin, it had no significant innovations in the early days. However, its simplicity and community culture laid the market foundation for it.

DOGE has developed thanks to strong community support. In early 2014, the community raised funds for the Jamaican bobsled team to participate in the Sochi Winter Olympics, gaining significant media exposure. DOGE has also been used for charitable projects such as building water wells in Africa, showcasing its potential as a payment tool.

In 2017, the cryptocurrency market exploded, and the price of DOGE increased, but it was not as much as the mainstream cryptocurrencies. After the crypto winter in 2018, DOGE was once regarded as a fringe currency. In 2020, Musk became its famous supporter, calling it "the people's cryptocurrency" and referring to himself as the "Dogecoin Godfather." Musk's tweets often lead to drastic fluctuations in the price of DOGE.

In April 2021, Musk released the "Moon Lambo" dog picture, and the price of DOGE reached an all-time high, surpassing $0.70. Although Tesla did not accept DOGE as payment, SpaceX announced it would accept DOGE for certain services, enhancing its mainstream application scenarios.

Currently, the main traffic of the DOGE ecosystem comes from Musk. His potential political career could bring new political traffic potential to DOGE, and the nearly 30% increase last week was a response to this background.

DOGE Rises Nearly 30%: Political Traffic Potential Emerges

Musk proposed the establishment of the "Department of Government Efficiency" (D.O.G.E), an initiative co-launched with former President Trump, aimed at auditing the federal government's finances and proposing suggestions to reduce waste. Trump announced the plan during a speech in New York, and Musk expressed his willingness to participate pro bono.

The name D.O.G.E is inspired by the DOGE community. Musk responded to related discussions on social media, showing his intention to participate. Trump also announced during a speech at the New York Economic Club on September 6 that if elected president, he would work with Musk to create a government efficiency committee.

In October, due to the ruling party's poor performance in hurricane disaster relief, the election situation reversed. Trump's deal regained popularity, boosting BTC. This week, Musk once again discussed the D.O.G.E plan during a town hall speech in Pennsylvania, attracting wide attention and becoming the main reason for DOGE's 30% increase.

The possibility of Musk entering politics is relatively high. In this U.S. election, he firmly supports Trump, acquiring social media platforms to break the Democratic Party's media monopoly, and actively donating to Trump's campaign team. Trump has also repeatedly expressed a desire to invite Musk to enter politics or serve as an advisor.

Trump faced difficulties during his first term, partly due to the defection of early political allies. In this election, Trump learned from past lessons and avoided interference from traditional establishment figures in choosing political allies. It is possible to choose a politically influential newcomer like Musk to formulate economic policies.

If the "Government Efficiency Department" is implemented, its proposal to streamline government departments will receive significant attention. MEME is essentially about traffic, and this event provides a new political traffic capture channel for DOGE. In the future, relevant measures by the U.S. Government Efficiency Department (D.O.G.E) may offer good exposure opportunities for DOGE. Therefore, DOGE will be an undeniable hotspot in the cryptocurrency industry's Trump trades.