Dogecoin (DOGE) has surged 23% in the past 24 hours, overtaking leading crypto assets like USDC and XRP on the ranking.
This rise follows a broader market rally, with many assets, including Bitcoin, Ethereum, and various meme coins, hitting highs not seen in months. The influx of new funds from institutional and retail investors has been a key driver behind this surge.
Once considered a $40 billion “joke” project, Dogecoin has seen substantial inflows over the past day, placing it among the biggest gainers. The reasons for this surge range from macroeconomic factors to U.S. political developments and the continued influence of Elon Musk, a prominent Dogecoin advocate.
While some analysts question whether the rally is sustainable, others predict a potential market correction once the election-related excitement dies down.
Dogecoin Overtakes XRP and USDC
Dogecoin’s meteoric rise has propelled its market capitalization to $41.8 billion, surpassing both XRP and USDC. Daily trading volumes have spiked and weekly metrics show a positive trend.
Over the past seven days, DOGE has gained 86%, outpacing many top cryptocurrencies by market cap. Its monthly gains have exceeded 150%, signaling a sharp reversal in the past month.
The token’s success has generated widespread attention on social media, with Dogecoin enthusiasts rallying around the asset. Its 24-hour trading volume has surged 192%, reflecting growing market interest.
As a result of this rally, Dogecoin is now the sixth-largest cryptocurrency by market capitalization, surpassing USDC and XRP, which had ranked higher just a week ago. USDC currently has a market cap of $37 billion, while XRP’s stands at $33 billion.
Notably, Dogecoin’s ability to overtake major projects like XRP highlights the growing influence of meme coins in the current market, which benefit from heightened speculative sentiment.
Dogecoin Rally Linked to Elon Musk and U.S. Elections
After trading sideways for several weeks, the “Uptober” rally helped drive crypto asset prices higher in anticipation of a surge in November. This rally was partly fueled by the growing prominence of crypto in U.S. politics ahead of the presidential election.
Both Kamala Harris and Donald Trump had voiced support for potential crypto regulations, which many believe could foster innovation in the sector. However, a Donald Trump win resonated better with most market investors.
Moreover, Elon Musk campaigned for Trump and planned to work with the administration in charge of the proposed Department of Government Efficiency (D.O.G.E). The polls’ outcome sparked a rally in Dogecoin, setting the stage for future rallies. Bitcoin also soared past $81K over the weekend.
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