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Dogecoin shot up to $0.4398 on Binance on Tuesday, reaching a three-year high that had meme lords in a frenzy. This rocket ride for the Shiba Inu-inspired coin, which logged a 143.2% leap over the past week, outshined Bitcoin’s modest 28.2% gains, per CoinGecko. The unexpected rally followed Donald Trump’s election win, with traders betting on pro-crypto policies and retail investors piling in for more meme coin magic.

Meme Coin’s Surge Outpaces Bitcoin, Reignites Speculation

Dogecoin’s performance last week stunned crypto watchers. With a 143.2% jump, DOGE raced past Bitcoin’s rise, which barely crossed the 28% mark. This move rekindled attention from retail traders, who see DOGE as a low-barrier way to play the crypto game. The hope: Trump’s presidency might fuel a crypto-friendly climate, boosting speculative assets like DOGE.

Market-watchers now wonder if this DOGE rally can hold or if volatility will strike back. Julien Auchecorne from Auros Ventures observed, “With the election overhang now behind us, the rally in crypto markets appears sustainable, buoyed by positive forward signals from the U.S.” But uncertainties loom, especially with altcoins, as DOGE still has plenty of hurdles in a market where Bitcoin often calls the shots.

Musk Teases “D.O.G.E.,” Adding to the Hype

Meanwhile, Elon Musk, aka the “Dogefather,” tossed fresh fuel into the fire by suggesting he might helm a hypothetical “Department of Government Efficiency” (D.O.G.E.) under Trump. His talk of trimming $2 trillion from the federal budget—tongue in cheek or not—had DOGE fans foaming at the mouth, driving the meme coin even higher. Musk’s sporadic nods to DOGE often result in price surges, pushing the coin’s value into unpredictable territories.

Structural Challenges Loom for Altcoin Market

Yet, DOGE’s market reality remains uncertain, facing structural obstacles familiar to altcoins. Auchecorne added, “The structure of altcoin launches is under pressure, especially as institutional incentives still heavily favor de-risking at launch and redirecting capital afterward.” Projects like Aptos saw major post-launch sell-offs, but some protocols, like Arbitrum, are experimenting with gradual token releases to hold institutional interest.

Spirit Blockchain’s Big Bet on DOGE

In a bold play, Canada-based Spirit Blockchain Capital plans to build reserves of DOGE, mirroring MicroStrategy’s Bitcoin accumulation approach. Spirit intends to launch exchange-traded products (ETPs) and payment gateways, making DOGE more than just a meme. With Dogecoin now the sixth-largest crypto by market cap, passing Circle’s stablecoin USDC and Ripple’s XRP, the coin shows it still commands serious attention in crypto land.