Historical Background

  • Origin and Promotion: Dogecoin was initially launched in 2013 as a joke cryptocurrency based on a meme (Shiba Inu dog). Musk began frequently mentioning Dogecoin on social media (especially Twitter, now X) starting in 2019, gradually bringing it into the mainstream through humorous tweets and public support. For example, he referred to Dogecoin as 'the people's cryptocurrency' and drove its price to fluctuate dramatically multiple times in 2021.

  • Key Events:

    • May 2021 SNL Effect: Musk mentioned Dogecoin on Saturday Night Live, leading to a brief price increase followed by a crash, demonstrating that his influence has both positive drivers and market correction risks.

    • Tesla Accepts DOGE Payments: In 2022, Tesla began accepting Dogecoin payments for some merchandise (such as merchandise), further enhancing its practical use.

    • SpaceX Plans: Musk has stated that SpaceX will use Dogecoin to fund lunar missions (such as 'DOGE-1'), although this has not been fully realized, it has strengthened the connection with Dogecoin.

Latest Developments in 2025

  • Trump Administration and DOGE:

    • In 2025, Musk serves as an advisor in the Trump administration's Department of Government Efficiency (DOGE), whose name coincidentally shares the same abbreviation as Dogecoin. Although this may just be a coincidence or Musk's humor, he mentioned 'my @DOGE office' in a March 20 X post, accompanied by an image of the Doge meme on the office wall, further sparking community associations.

    • Some X users (like @Dogecoin688) speculate that Musk may utilize Dogecoin to provide decentralized payment solutions for his global business ecosystem (including Starlink, FSD, X platform, etc.) to bypass traditional financial regulations.

  • Dogecoin Price Performance:

    • According to recent data, Dogecoin soared to $0.45 after Trump's election in November 2024 but lost momentum at the beginning of 2025, dropping to about $0.20 as of March 19 (reference Analytics Insight). Musk's recent statements (like the March 20 X post criticizing long-term scams) did not directly mention Dogecoin's price but were interpreted by some investors as a signal of support for its ecosystem.

    • There are views on X (like @wangfenganc) suggesting that Musk's 'Government Efficiency' topic could drive traffic to Dogecoin, potentially prompting a short-term rebound, but others warn that this presents 'both opportunities and traps'.

Musk's Influence and Controversy

  • Positive Impact:

    • Musk's support has significantly increased Dogecoin's visibility and adoption rate, transforming it from a meme coin to one of the top-ranked cryptocurrencies by market capitalization.

    • His companies (such as Tesla and SpaceX) provide real use cases for Dogecoin, enhancing its potential value.

  • Controversies and Doubts:

    • Some investors (like @Morris_LT) question Musk's frequent mentions of Dogecoin as a strategy for 'pumping and dumping', concerned about his diminishing influence. A 2025 X post (like @Martinliu1820) points out that 'Musk's endorsements have no effect on Dogecoin anymore', suggesting that Dogecoin may have 'weaned off' and is no longer reliant on celebrity effects.

    • Market volatility has also led to it being viewed as a high-risk asset, lacking the long-term stability of mainstream coins like Bitcoin.

Future Outlook

  • Short-term: Whether Dogecoin can return to $0.45 or even challenge $1 largely depends on Musk's further statements (such as promoting government projects using DOGE payments) and market sentiment. The current support level is between $0.15 and $0.20; if it breaks below, it may further decline.

  • Long-term: If Musk successfully integrates it into SpaceX, the X platform, or the Trump administration's digital economy strategy, Dogecoin may realize its transformation from meme to practical currency. However, the community's concerns about its level of decentralization and technological foundation still need to be addressed.

  • Community Perspective: Some predict on X that 'now is the time for Musk to achieve Dogecoin, and in the future, Dogecoin will achieve Musk', implying it could become a key part of Musk's global strategy.

Summary

Musk's relationship with Dogecoin is a product of the interplay between his personal charisma, technological vision, and market speculation. In 2025, he continues to create topics for Dogecoin through government roles and social media, but signs of diminishing influence are apparent. Investors should pay attention to his specific actions (such as payment integration or policy support) rather than mere statements, while also being wary of market volatility risks.