In a surprising turn of events, the meme-inspired cryptocurrency Dogecoin (DOGE) has surged ahead, flipping the market capitalization of XRP (XRP) in a matter of hours. This bullish sentiment has been largely driven by the endorsement of Dogecoin by technology entrepreneur Elon Musk, who has been vocal about his support for the cryptocurrency within the Trump administration.

Dogecoin's Meteoric Rise Defies Expectations

Dogecoin Overtakes XRP in Market Cap

Dogecoin's price has skyrocketed by 14% in the past 24 hours, extending its 7-day gains to a staggering 55%. This surge has propelled DOGE above the 23-cent mark, reaching prices last seen in November 2021 and surpassing a yearly high of 22 cents set in April. As a result, Dogecoin's market capitalization has now exceeded $34 billion, flipping the $33.3 billion capitalization of XRP.

Potential to Overtake USDC

If the current price action continues, Dogecoin could potentially flip the stablecoin USDC, which currently has a market capitalization of $37 billion, by as early as Tuesday. This remarkable rise in Dogecoin's value has caught the attention of traders and investors alike, who are closely monitoring the cryptocurrency's performance.

Renewed Trading Interest Fueled by Musk's Influence

Dogecoin's surge can be attributed to the renewed trading interest sparked by the possibility of its abbreviation becoming a part of Republican Donald Trump's administration. In recent months, Elon Musk has discussed the creation of a "Department of Government Efficiency," abbreviated as D.O.G.E., which has fueled expectations among traders that there could be increased mainstream media coverage and retail trading activity surrounding Dogecoin.

Trump's Potential Involvement and Musk's Endorsement

Trump has already stated that he would enlist Musk to run a "government efficiency commission" if he were to win a second term as U.S. president, as reported by the BBC. This potential involvement of Musk and the possible integration of Dogecoin's abbreviation into the government's operations have further bolstered the cryptocurrency's appeal among traders and investors.

Surging Futures Open Interest

The renewed interest in Dogecoin is also reflected in the increasing open interest in Dogecoin-tracked futures. The open interest has risen by 33% since last week, now standing at over 8.33 billion DOGE, or just over $1.8 billion at current prices. This surge in futures activity suggests that traders are actively positioning themselves to capitalize on Dogecoin's continued momentum.

Ethereum-Based D.O.G.E. Memecoin Soars

It's not just Dogecoin that has been experiencing a surge in value. A parody D.O.G.E. memecoin on the Ethereum blockchain has also risen by more than 600% since early October, albeit with a relatively smaller market capitalization of just over $160 million as of Sunday.

Traders Remain Bullish on Dogecoin's Future

Despite the recent price surge, traders do not expect the Dogecoin rally to be ending anytime soon. As reported by CoinDesk last week, the cryptocurrency's momentum is expected to continue, fueled by the growing interest and attention surrounding its potential integration into the Trump administration's operations.