Dogecoin, a popular meme-inspired cryptocurrency linked to Elon Musk, saw a significant increase in its value after President-elect Donald Trump approved Musk’s plans for a new executive department that shares a name.

Trump appointed Musk, who is considered the richest person in the world by Forbes, to head the new Department of Government Efficiency (DOGE). Vivek Ramaswamy, a billionaire who previously ran against Trump in the Republican primaries before endorsing him, will join Musk in this role. Both have been vocal supporters of Trump during his campaign for reelection.

Musk stated, “This will send shockwaves through the system, and anyone involved in government waste should take notice!” in a Tuesday announcement.

On Wednesday, Musk met with the House Republican conference in Washington, D.C. This meeting followed a massive boost in his personal wealth, which increased by $50 billion due to the rising stock prices after Trump’s recent electoral win, as per Forbes. Musk had also been in Palm Beach, Florida, where Trump has been establishing his new administration from Mar-a-Lago.

What are Trump’s plans for DOGE?

The president-elect has not provided many specifics on how the new department will manage to save potentially trillions in government spending. However, he stated on Tuesday that the initiative will aim to reorganize government agencies and eliminate inefficiencies and excess regulation.

“To drive such significant change,” Trump mentioned, Musk and Ramaswamy will collaborate with the White House and the Office of Management and Budget to fulfill long-held Republican objectives. He added that the department would implement major structural improvements and introduce an entrepreneurial mindset to government operations that has never been seen before.

Trump has set a target date of July 4, 2026, the 250th anniversary of the Declaration of Independence, for achieving these objectives. He suggested that the project could spawn innovations comparable to those of The Manhattan Project, the secretive government initiative that developed the first atomic bombs.

“A more compact government, with enhanced efficiency and reduced bureaucracy, will be a tremendous gift to America,” Trump remarked in his statement.

What is Dogecoin and its connection to DOGE?

After Trump’s announcement, Dogecoin experienced a price surge, trading around 40 cents as of Wednesday afternoon, according to CoinMarketCap.

Originally launched in 2013 to poke fun at other cryptocurrencies, Dogecoin rapidly evolved into one of the largest cryptocurrencies and reportedly became Musk’s favorite.

Musk has consistently supported Dogecoin, declaring in 2022 that he would “continue to back Dogecoin.” In a recent conversation shared on X, a social media platform he acquired two years ago, he mentioned that he still holds “a significant amount” of Dogecoin. If he maintains a large holding, he’s likely to benefit financially from the recent surge following Trump’s announcement.

Since the announcement, Musk has been active on X, sharing AI-generated images and memes featuring the Shiba Inu dog symbol associated with Dogecoin.

Musk also indicated his interest in merchandising items related to the new department and the cryptocurrency in a separate post.

As of Wednesday afternoon, CoinMarketCap reported Dogecoin’s market cap was close to $58 billion.