Dogecoin Could Reach the $1 Mark if It Maintains Its Current Upward Momentum, Particularly in Light of New Developments in Donald Trump's Inauguration Preparations

The popular meme token has flipped Ford, Adidas, and Roblox in market capitalization.

The price of Dogecoin (CRYPTO: DOGE) could hit the $1 mark if it continues its recent upward trend, especially in light of a new development in Donald Trump’s preparations for his inauguration.

What Happened: Trump recently appointed Elon Musk and Vivek Ramaswamy to lead the newly created Department of Government Efficiency, abbreviated D.O.G.E.

The popular meme token has now flipped Ford, Adidas, and Roblox in market capitalization.

The Power Of Meme

The “D.O.G.E.” initiative will aim to restructure federal agencies, focusing on cutting wasteful spending and improving operational efficiency, which Trump said is “central to the ‘Save America’ Movement,” in a statement shared on Tuesday.

The department plans to adopt Musk’s entrepreneurial mindset to enhance the ability of federal agencies to serve the public.

“It will become, potentially, “The Manhattan Project” of our time. Something that Republican politicians have dreamed about for a very, very long time,” according to Trump’s statement on the initiative.

DOGE will work closely with the White House and the Office of Management and Budget (OMB) to implement large-scale structural reforms and will operate outside of traditional federal oversight rules.

In a statement following the announcement, Musk, a known Dogecoin fan and a prominent supporter of Trump’s presidential campaign, confirmed that all actions taken by the DOGE will be viewable online by the public.

Musk also encouraged the public to provide feedback on government spending decisions, adding that if citizens believe that important programs are being cut or wasteful spending is continuing, they can communicate their concerns directly to the department.

Will It Work?

The initiative will aim to tackle waste and fraud within the estimated $6.5 trillion in annual government spending. Musk has previously proposed cutting $2 trillion from federal spending.

During a live discussion with Trump, Musk offered to help set up a “government efficiency commission” to cut overspending by the U.S. government.

The Tesla (NASDAQ:TSLA) CEO said that when the government spends more than it collects, it can lead to inflation if the money supply outpaces the growth of goods and services.

The work is expected to be completed by July 4, 2026, the 250th anniversary of the Declaration of Independence.

While the establishment of DOGE has been met with support by many, critics have raised concerns about the feasibility of the drastic budget cuts and their potential impacts on essential government services and programs.

Dogecoin Derives Benefit

Musk intentionally named the new department after Dogecoin (CRYPTO: DOGE) as a humorous nod to the cryptocurrency, which he has famously supported.

Dogecoin has seen a major price rally since Trump’s election win. The meme token recorded gains of over 250% in the last month, surpassing $0.41, which is the highest level seen in three years.

Its market value, which currently stands at approximately $53 billion, has flipped Ripple’s (CRYPTO: XRP) XRP token, ranking as the top sixth cryptocurrency. Dogecoin is now bigger than several established entities like Ford, Adidas, and Roblox.

Many investors are eyeing the $1 price target for the meme coin, expecting Musk’s association with Dogecoin to drive prices upward.

Dogecoin has previously reached higher price levels during market surges, especially in 2021, when it saw major gains driven by social media trends and endorsements from Musk.

The positive sentiment across the cryptocurrency markets is also anticipated to maintain bullish momentum for Dogecoin.

As with most altcoins, Dogecoin’s price movement is also influenced by Bitcoin (CRYPTO: BTC). Bitcoin hit a record high of $90,000 on Tuesday and is now trading at around $86,900, up 17% in the last seven days.

It’s also important to note that approximately 98% of DOGE's supply is currently in profit, which means potential profit-takings might play out at some point in the future.

Historically, when a high percentage of holders are profitable, it can signal a market top, which later leads to price corrections.

As always – stay safe out there in the middle of the huge rally.

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