Dogecoin (DOGE) ballooned to $0.4398 on crypto exchange Binance on Tuesday, marking its highest value in over three years.

The Shiba Inu-themed meme coin saw a massive 143.2% rise in the past week, significantly outpacing Bitcoin’s (BTC) 28.2% gain during the same period, as per CoinGecko data.

The rally follows Donald Trump’s election win, boosting optimism for speculative assets such as Dogecoin as traders bet on pro-crypto policies. The challenge now is for DOGE to sustain this momentum while attracting long-term institutional interest.

“With the election overhang now behind us, the rally in crypto markets appears sustainable, buoyed by positive forward signals from the U.S.," Julien Auchecorne, head of Auros Ventures, told Decrypt. "However, uncertainties remain, particularly around altcoins. We're closely watching if alts will continue trailing Bitcoin or if they'll begin to outperform, potentially drawing back retail interest.”

Elon Musk, the self-proclaimed “Dogefather,” fueled even more buzz last month by suggesting that, if appointed by Trump, he could lead a “Department of Government Efficiency” (D.O.G.E.) with the ambitious goal of slashing $2 trillion or more from the federal budget.

The nod to the acronym “D.O.G.E” sent Dogecoin enthusiasts into a frenzy, pushing the coin to new heights. Musk’s endorsement—whether serious or in jest—often leads to spikes in DOGE’s price.

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

“The structure of altcoin launches is under pressure, especially as institutional incentives still heavily favor de-risking at launch and redirecting capital afterward," he said. “Protocols are now adjusting strategies to retain institutional participation post-launch, taking a more measured approach to their target fully diluted valuations (FDVs)."

For example, Aptos—a network founded by ex-Meta employees—saw rapid sell-offs in 2022 from early institutional investors following its launch, causing steep post-launch declines. In contrast, protocols such as Arbitrum are adopting gradual token releases to retain institutional engagement and achieve more stable growth.

Yet, questions remain about the sustainability of the DOGE rally.

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

Amid the retail-driven frenzy, Canada-based Spirit Blockchain Capital has said it wants to mirror MicroStrategy’s Bitcoin accumulation plan to build large reserves of Dogecoin.

Spirit’s approach includes launching exchange-traded products (ETPs) and payment gateways, seeking to institutionalize Dogecoin’s use case beyond its meme origins.

While Dogecoin remains below its all-time high of $0.73 in 2021, the recent surge indicates that it’s far from losing its appeal. The original meme coin now the sixth-largest crypto by market cap, ahead of Circle’s stabelcoin USDC and Ripple (XRP), shows CoinGecko data.

Edited by Stacy Elliott.