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The most notable figure in Donald Trump's second administration is undoubtedly Elon Musk, 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 significant attention from the virtual asset (cryptocurrency) industry since its inception. The abbreviation 'DOGE' for the Department of Government Efficiency is reminiscent of the popular meme coin 'Dogecoin (DOGE)', which Musk has long supported. In fact, Dogecoin rose by more than 16% recently after the Dogecoin logo was posted on the department's website.

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

"DOGE, My Favorite Coin"...Self-proclaimed 'Doge Father' Musk

Musk first mentioned Dogecoin 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 multiple times on X. According to Decrypt, every time Musk tweeted about it between 2019 and 2020, Dogecoin search volumes surged.

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

However, contrary to expectations, Dogecoin plummeted by nearly 30% after Musk's SNL broadcast. At the time, CNN speculated that the reason for this crash was Musk's comments that shattered investors' expectations. Investors hoped for supportive comments about Dogecoin from Musk 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 SNL aftermath had fully subsided, Musk announced a collaboration between SpaceX and Dogecoin. He planned a lunar satellite mission called 'Doge-1' to be paid for entirely with Dogecoin. Following this announcement, Dogecoin surged by about 20%.

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

In May 2022, Musk continued his support for Dogecoin by stating that SpaceX's internet service 'Starlink' subscription fees might eventually be payable with Dogecoin. Following his comments, Dogecoin, which had been in a bearish trend, rose by about 10%.

Doge Father Becomes a Key Figure in the Trump Administration...Focus on Pro-Crypto Moves

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

Currently, Musk's DOGE is exerting a broader influence than expected. Since the inauguration of Trump's second administration, it has already reviewed key materials 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 payment system, which controls the annual $5 trillion federal budget expenditure. 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 a significant authority.

Some have raised concerns about Musk potentially overstepping his bounds, 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 halt government budgets without White House approval.

Attention is focused on what moves Musk, who has gained wings through Trump, will make in the U.S. government. Recently, Bloomberg reported, citing sources, that DOGE is currently exploring ways to utilize blockchain to enhance U.S. government efficiency. It is known that they have met with representatives of several public blockchains to evaluate their technologies.

Of course, it is not yet clear 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 pursues this plan, "it could become the largest government project seen in the U.S. so far."

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 adoption may be low, and there is a higher likelihood of a consortium blockchain being applied instead of a public blockchain."