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![DogeCoin logo posted on the Government Efficiency Department website / Photo = DogeDesigner X] (https://media.bloomingbit.io/stg/news/c62420f8-4c14-4a95-9077-88aeec8a5546.webp)

The most notable figure in Donald Trump's second administration is undoubtedly Elon Musk, the CEO of Tesla. Musk is leading the 'Department of Government Efficiency (DOGE)' in the Trump administration, focusing on improving government operational efficiency and cutting federal budgets.

Musk's Department of Government Efficiency has attracted considerable attention from the virtual asset (cryptocurrency) industry since its inception. The department's abbreviation 'DOGE' is reminiscent of the popular meme coin 'Dogecoin (DOGE)' that Musk has long supported. In fact, Dogecoin recently rose more than 16% after the Dogecoin logo was posted on the department's website.

The phenomenon of Dogecoin's price moving according to Musk's actions has been around for quite some time. We looked back at the enduring relationship between Musk, who calls himself the 'Doge Father' and has become a prominent pro-cryptocurrency figure in the Trump administration, and Dogecoin.

"DOGE, my favorite coin"... Self-proclaimed 'Doge Father' Musk

![Photo = Elon Musk X] (https://media.bloomingbit.io/stg/news/922c526a-641c-4937-8ece-cc683244421a.webp)

Musk first mentioned Dogecoin directly in April 2019. At the time, he stated on his X (formerly Twitter), "Dogecoin is my favorite cryptocurrency," and "It's really cool." Since then, he has mentioned Dogecoin several times on X. According to Decrypt, Dogecoin search volume surged every time Musk tweeted about it from 2019 to 2020.

On May 7, 2021 (local time), Dogecoin soared to an all-time high on news of Musk's SNL appearance. Before his SNL appearance, he hinted at mentioning Dogecoin by posting a composite photo with the Dogecoin mascot on his X, and on the May 8 broadcast of SNL, he introduced himself as the Doge Father.

![Photo posted by Elon Musk before SNL appearance / Photo = Elon Musk X] (https://media.bloomingbit.io/stg/news/e2cca813-0962-4cda-b572-d62d6929b4ec.webp)

However, contrary to expectations, Dogecoin plummeted nearly 30% after Musk's SNL broadcast. At the time, CNN speculated that the cause of this crash was Musk's remarks that shattered investors' expectations. Investors hoped Musk would make supportive statements about Dogecoin on SNL, but he called Dogecoin a 'hustle.' Some analysts also suggested that the excessive mockery of Dogecoin on the show may have contributed to the price drop.

On May 10, 2021, before the aftermath of SNL had subsided, Musk announced a collaboration between SpaceX and Dogecoin. He plans to launch a lunar exploration satellite 'Doge-1' paid entirely with Dogecoin. When this plan was announced, Dogecoin surged about 20%.

In December 2021, Dogecoin was allowed as a payment method for some Tesla products. This decision led to Dogecoin rising nearly 15%. At the time, Bitcoin was excluded from Tesla's payment methods due to high carbon emissions during mining, which drew more attention.

In May 2022, he continued his support for Dogecoin by announcing that SpaceX's internet service 'Starlink' would consider allowing subscription fees to be paid with Dogecoin someday. At the time, Dogecoin, which was in a bearish trend, rose about 10% following his remarks.

Doge Father becomes a 'power player' in the Trump administration... Focus on pro-cryptocurrency moves

![Photo = Shutterstock] (https://media.bloomingbit.io/stg/news/f2948426-0102-433b-b35d-5fbc45e41851.webp)

Musk, who has consistently shown 'sincerity' towards Dogecoin, has now become a power player in the Trump administration. From his first day in office, President Trump renamed the 'U.S. Digital Service,' a presidential agency, to the 'U.S. Doge (DOGE) Service' and installed DOGE in the Oval Office through an executive order.

Currently, Musk's DOGE is exerting a broader influence than expected. Since the launch of the second Trump administration, it has already reviewed key data from several federal agencies and investigated budget expenditures, leading to massive personnel and spending cuts.

According to the New York Times (NYT) on the 1st (local time), DOGE and its associates have gained access to the Treasury Department's payment system, which controls $5 trillion in annual federal budget expenditures. The U.S. Treasury payment system handles information for millions of Americans receiving pensions, tax refunds, salaries, etc., from the federal government, and gaining access to it is considered to have acquired significant authority.

Some are concerned that Musk may overstep his authority, but President Trump defended Musk at a White House press conference, saying, "I think Elon is doing a good job," and also stated that he would not unilaterally suspend government budgets without White House approval.

Attention is focused on what actions Musk, who has gained wings through Trump, will take in the U.S. government. Recently, Bloomberg reported, citing sources, that DOGE is currently reviewing ways to use blockchain to improve U.S. government efficiency. To this end, it is known to have met with representatives of several public blockchains to evaluate their technology.

Of course, it is not yet known exactly which blockchain will be used, and the possibility of the plan being scrapped cannot be ruled out. However, Bloomberg raised expectations by stating that if DOGE pushes forward with the plan, "it is likely to be the largest government project ever seen in the U.S."

The impact on the virtual asset market is also noteworthy. Kim Dong-hyuk, a researcher at Dispread, said, "If Musk's DOGE introduces public blockchain into government operations, the related blockchain and virtual assets are expected to benefit greatly," but added, "However, the actual possibility of introduction may be low, and it is more likely that a consortium blockchain rather than a public blockchain will be applied."

Soo-hyun Lee, Bloomingbit Reporter shlee@bloomingbit.io