Once the eighth-largest cryptocurrency, the memecoin has climbed to number six, eclipsing XRP. This performance appears to validate investors' prediction that a Trump win would be a boon for Doge

Dogecoin has outperformed Bitcoin in the last week, continuing its impressive rally. The memecoin, which was once ranked eighth, has now climbed to number six, overtaking XRP.

This performance seems to confirm investors’ predictions that a Trump victory would benefit Doge, especially considering that the coin’s most prominent supporter — Tesla founder Elon Musk — has become a close advisor to the President-elect after aligning himself with the Republicans in July.

Since the election, Musk has reportedly been spending each day with Trump at his estate in Palm Beach, Florida. As the President-elect forms his administration, reports indicate that Musk is influencing Trump's staffing decisions.

During his campaign, Trump proposed creating a new department to oversee government spending, called the Department of Government Efficiency, or D.O.G.E. — a clear reference to Musk's favorite memecoin.

At several campaign rallies, Musk's mere mention of the department (which may or may not come into existence) caused Dogecoin to surge. With Trump regaining control of the White House, we can expect more news about Musk and his proposed government efficiency initiative, which could translate to more free publicity for Dogecoin.

On Monday, a Kentucky representative posted on X, urging Congress to pass “at least a dozen bills to shrink government overreach” before Trump takes office, to which Musk replied “Government Efficiency FTW!!” — FTW stands for “for the win.”

Trump's victory has also been beneficial for crypto in general. His campaign was largely pro-crypto, making him the industry's preferred candidate. In the lead-up to the election, Trump was heavily favored on crypto prediction markets like Polymarket and Robinhood.

His win has sent the entire crypto market on an upswing, with Bitcoin continuing to break records over the past few days. Other Shiba Inu-themed memecoins are also reaching new highs. Shiba Inu, or SHIB, has gained 36% in the last seven days, while Bonk has surged by 46%.

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