The price of Dogecoin increases by 20% following Trump's announcement of a new Department of Government Efficiency.

• The price of Dogecoin increased following President-elect Trump's official announcement about the establishment of the Department of Government Efficiency.
• Since election day, the memecoin has experienced a significant increase of over 150%, outperforming bitcoin's 30% rise in the same period.
• Trump initially floated the idea of an efficiency commission in September.

On Tuesday night, the stock price of the company shot higher, continuing its post-election surge following President-elect Donald Trump's announcement of the creation of the Department of Government Efficiency, which he referred to as "DOGE" in his statement.

Elon Musk and Vivek Ramaswamy, the former Republican presidential candidate and Strive Asset Management co-founder, will lead the department, Trump stated in a statement. Together, they will "pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies."

Dogecoin experienced a nearly 20% increase in value, making it one of the top performers in the postelection rally. Since election day, its value has increased by 153%, compared to a 30% rise in the same period. Additionally, Dogecoin surpassed its previous ranking to become the sixth largest cryptocurrency by market cap this week.

Memecoins are viewed as a measure of retail investors' interest and willingness to take on risk in the crypto market. As memecoin activity increases, it often signals that retail investors are engaged and eager to speculate further on the risk spectrum.

In September, Trump proposed the creation of an efficiency commission. Since then, Musk, who has referred to himself as the "Dogefather" and has made public comments about the memecoin that affect its price, has referred to the commission as the "Department of Government Efficiency" or "D.O.G.E." on his social media platform X.

Dogecoin experienced a surge in popularity in 2021 due to Elon Musk's endorsement and social media hype. In May, Musk's posts helped dogecoin reach its all-time high of 67 cents, according to Coin Metrics. However, his appearance on SNL, where he referred to dogecoin as a "hustle," caused its price to plummet.

The crypto market paused its postelection rally, with Bitcoin trading flat at approximately $87,000 after briefly reaching $90,000 in late afternoon trading. Crypto stocks were down 1% and 2%, respectively, in extended trading.