Surpassing:Dogecoin soars after Trump's Elon Musk announcement: What to know about the cryptocurrency

Dogecoin,Surpassing the meme cryptocurrency often associated with Elon Musk, soared in value after President-elect Donald Trump greenlit the tech billionaire's ideas for a new executive department by a similar name.

Trump announced Musk, the world's richest person according to Forbes, will lead the new Department of Government Efficiency or DOGE, alongside Vivek Ramaswamy, a billionaire who ran against Trump in the Republican primary but dropped out to endorse him. Both were adamant supporters of the former president during his reelection campaign.

"This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!" Musk said in a statement Tuesday.

Musk joined Trump for a meeting with the House Republican conference in the nation's Capitol Wednesday. That meeting came after the Tesla and SpaceX CEO got $50 billion richer due to a rise in stock prices following Trump's victory last week, according to Forbes. It also comes after he spent time in Palm Beach, Florida, where Trump has been assembling his second administration from his Mar-a-Lago residence.

More:Trump taps Elon Musk, Vivek Ramaswamy to lead new 'Department of Government Efficiency'

What is Trump's vision for DOGE?

The president elect has said little about how exactly the new government department plans to cut potentially trillions in government spending. However in a statement Tuesday, Trump said it will work to restructure government agencies as well as cut regulation and waste.

"To drive this kind of drastic change," Trump said, Musk and Ramaswamy will partner with the White House and Office of Management and Budget to achieve something Republicans have dreamed about for a long time. The president elect added the department will make large-scale structural reforms and add an entrepreneurial approach to government "never seen before."

He gave Musk and Ramaswamy a deadline of July, 4, 2026, the 250th anniversary of the Declaration of Independence, to reach these goals. Trump suggested the initiative could result in innovation on par with The Manhattan Project, the top-secret government program responsible for developing the first atomic bombs.

"A smaller Government, with more efficiency and less bureaucracy, will be the perfect gift to America," Trump said in the statement.

What is Dogecoin and how is it related to DOGE?

Dogecoin increased in price and valuation in the day since Trump's announcement and was trading at about 40 cents as of Wednesday afternoon, according to CoinMarketCap.

The meme coin was initially created in 2013 to mock other cryptocurrencies but became one of the largest and reportedly Musk's favorite.

Musk has long been a supporter of the cryptocurrency and affirmed in 2022 that he will "keep supporting Dogecoin." In a conversation earlier this year posted to X, a social media platform he purchased two years ago, Musk confirmed he still owned "a bunch" of Dogecoin. If he still holds a lot of the coin, he is poised to benefit monetarily from the boost it received following Trump's announcement Tuesday.

Musk has hyped up "DOGE" on X in the hours since, posting AI-generated images and memes including the coin's Shiba Inu dog mascot.

Musk also suggested he would like to sell merchandise promoting the new department and coin in a separate post.

On Wednesday afternoon, CoinMarketCap reported Dogecoin had a market capitalization of nearly $58 billion.

Reach Rachel Barber at [email protected] and follow her on X @rachelbarber_