Dogecoin rose by 43 cents on the continued election rally.

Dogecoin (DOGE) bubbled to $0.4398 on crypto exchange Binance on Tuesday, marking its highest price in more than three years.

The Shiba Inu-themed meme coin has seen a whopping 143.2% gain over the past week, significantly outpacing Bitcoin (BTC)'s 28.2% gain over the same period, according to CoinGecko data.

The rally boosts optimism for speculative assets like Dogecoin as traders bet on pro-crypto policies following Donald Trump's election win. The challenge now is for DOGE to sustain this momentum while attracting long-term institutional interest.

“With the election now behind us, the rally in the crypto markets looks to be sustainable. We're watching closely to see if alts continue to follow Bitcoin or if they start to outperform, they may return to retail interest,” Julian Achhorn, head of Auros Ventures, told Decrypt.

Elon Musk, the self-proclaimed “Doge Father,” made even more noise last month by saying he would lead the “Department of Government Efficiency” (DOGE) if appointed by Trump, with an ambitious goal of cutting $2 trillion or more. Federal budget.

A nod to the acronym “DOGE” sent Dogecoin fans into a frenzy, pushing the coin to new heights. Musk's endorsement—whether serious or in jest—often results in a significant increase in DOGE's value.

Despite the excitement surrounding Dogecoin, Auchecorne points to some structural challenges in the altcoin market.

“The structure of altcoin startups is under pressure, especially since institutional incentives are heavily favoring de-risking at launch and moving capital.” Protocols are now adapting strategies to maintain institutional engagement after launch, taking a more measured approach. to their target fully diluted values ​​(FDVs).

For example, Aptos—a network founded by former Meta employees—has taken a steep discount since its launch in 2022 following a quick sale from its first institutional investors. In contrast, protocols like Arbitrum are adopting gradual token releases to maintain institutional participation and achieve more stable growth.

However, questions remain about the sustainability of the DOGE lineup.

“As this dynamic evolves, we expect capital flows to be selectively attracted to projects that can sustainably balance institutional needs with strong market attractiveness,” said Auchechorne.

Amidst the retail-led frenzy, Canada-based Spirit Blockchain Capital said it wants to mirror the microstrategy bitcoin stockpile plan to build a large Dogecoin stockpile.

Spirit's approach involves launching exchange-traded products (ETPs) and payment gateways, seeking to institutionalize Dogecoin's use case beyond note-taking.

While Dogecoin is below its all-time high of $0.73 in 2021, the recent rally shows that it is far from losing its appeal. The main meme coin is now the sixth-largest crypto by market capitalization, ahead of Circle's stablecoin USDC and Ripple (XRP), CoinGecko data shows.

Edited by Stacy Elliott.