Elon Musk Has Left the White House - Should Dogecoin Investors Run Away?

Dogecoin (CRYPTO: DOGE) was created as a joke by two friends in 2013, who were inspired by the famous "Doge" meme. They had no idea that it would peak at $0.73 per token in 2021, equivalent to an astonishing market capitalization of nearly $90 billion. Most of that value has been created thanks to the support of Elon Musk, which has been ongoing since 2019. In fact, the latest price surge of Dogecoin stemmed from Musk's involvement in the Trump administration, where he temporarily ran a government agency with a name related to this meme token. But Musk's time at the White House has officially ended, so investors may be wondering what to do next. Is Dogecoin still a worthy investment or is this a sure sign to run away? Musk's Dogecoin Support Timeline From 2019 to 2021, Musk frequently shared memes related to Dogecoin on social media and engaged in friendly conversations with other enthusiasts. Investors began to think that he had plans to create real value for this meme token, and that speculation peaked before he appeared on Saturday Night Live. During the May 8, 2021 broadcast, Musk participated in a comedy skit about Dogecoin, which ended with him calling the meme token a "hustle." While it was just a fun joke, investors began to realize that Musk had no specific plans to create value beyond his endorsement on social media, so Dogecoin peaked at $0.73 per token that very night. The currency plunged over the next 12 months, losing more than 90% of its value by mid-2022. The currency remains dormant in 2023 and most of 2024, until the US presidential election. Musk poured his cash and influence on Donald Trump, who campaigned with a series of pro-crypto policies, and Dogecoin skyrocketed (cùng most cryptocurrencies tử) when Trump finally won the presidential election. A short time later, Trump announced a plan to appoint Musk to head an external government agency tasked with reducing the national debt of the United States by cutting spending. Musk named the agency the Department of Government Efficiency, or DOGE for short, clearly referencing his favorite cryptocurrency. However, to this day, Dogecoin has not really played any role in this agency, so its post-election price surge is entirely speculative. Musk's time at the White House has now ended. He is classified as a "special government employee," meaning he can only work in the government for 130 days each year -- and from January 20 ( Trump's inauguration ) to May 30 is exactly 130 days. Dogecoin Has Some Serious Basic Issues Dogecoin has dropped sharply by 59% from its highest point in the last 52 weeks, but Elon Musk's departure from the DOGE agency is not the biggest reason. This meme token has struggled to find a real-world use case, and if consumers, businesses, and investors do not have specific reasons to own it, sustainable value cannot be created. According to Cryptwerk, only 2,096 businesses worldwide accept Dogecoin as a payment method for goods and services. If consumers can't spend Dogecoin at their favorite stores, they have no reason to buy it. Businesses are unlikely to embrace this meme token anytime soon, as its extreme volatility will make cash flow management a nightmare. Dogecoin also has a supply issue. There are 149.5 billion tokens in circulation as of the time of this writing, and although there is a cap on the number of tokens that can be "mined" each year, there is no end date. In other words, new tokens will continue to enter the market indefinitely. I have never seen an investment asset with an unlimited supply that appreciates in value over a long period. Maybe it's time to run up the hill The post-election price surge of Dogecoin peaked at $0.47, significantly lower than the 2021 high of $0.73. This indicates that investors are less eager to buy into the Musk-driven frenzy this time. However, this meme token is currently trading at $0.19 and still has plenty of room to drop if history is any guide. Dogecoin hit a low of around $0.06 in 2022, which could be a level to watch. This implies that there could be a 68% decrease from the current price, and with Musk now having left the White House and no improvement in the fundamentals of the meme token, this could be the path of least resistance.