Elon Musk confirms ‘no plans’ for Dogecoin leading to 6% drop underperforming market

Dogecoin slipped 6% in the past 24 hours, underperforming Bitcoin and Ethereum, which declined 2.4% and 3.2%, respectively.

This comes amid clarification from Elon Musk that the meme-based digital asset will not be adopted for any US government use.

Speaking at a political rally in Wisconsin over the weekend, Musk addressed public speculation over his proposed Department of Government Efficiency—abbreviated as D.O.G.E.—and whether the agency name signaled future integration of Dogecoin into federal programs.

”The names are similar, but they’re doing two very different things.

In fact, I was gonna call it like the Government Efficiency Commission, but that’s a super boring name.

And then the internet said no, it needs to be called the Department of Government Efficiency. I was like Internet’s that’s the internet is right.”

The clarification arrives at a time when Dogecoin is navigating potential ETF launches in the US. While Musk has long been associated with the blockchain’s cultural relevance and speculative cycles, recent developments show a more muted price reaction to his statements.

“There are no plans for the government to use Dogecoin, or anything as far as I know,” Musk stated. “They happen to be similar names, but really we’re just literally trying to make the government 15% more efficient.”

Weak Price Performance Despite Infrastructure Growth

Dogecoin’s underperformance comes despite a range of developments in 2025. The SEC is currently reviewing multiple Dogecoin ETF proposals from Bitwise and Grayscale, signaling growing institutional interest. Grayscale also launched a dedicated Dogecoin Trust earlier this year, allowing professional investors to gain exposure to DOGE through traditional financial instruments.

Despite these advancements, Dogecoin’s spot price has failed to reflect the momentum seen in other large-cap assets. Throughout March, the coin repeatedly tested support levels near $0.17, with failed breakouts leading to sharp intraday corrections. The price is down 22% over the past 12 months, while Bitcoin is up 17%.

Sentiment Decouples from Musk Effect

Musk’s clarification at the Wisconsin event reflects a broader trend in that Dogecoin’s market sensitivity to Musk-related commentary has declined.

In prior cycles, even indirect associations between Musk and DOGE sparked rallies. Now, the market appears to require more concrete developments—such as product integration, regulatory breakthroughs, or liquidity events—to sustain momentum.

This shift is likely related to the rise in alternative memecoins on Solana and the subsequent collapse of interest. Analysts tracking DOGE price action noted that overreliance on Musk’s influence has made the asset vulnerable to abrupt sentiment reversals, as seen in the weekend’s drop.

Dogecoin’s recent price action has lagged broader market movements, even as major digital assets like Bitcoin and Ethereum remain relatively resilient amid macroeconomic pressures tied to monetary policy uncertainty and tariff-related disruptions.

Outlook Hinges on Institutional Endorsement

The near-term outlook for Dogecoin remains closely tied to the progress of infrastructure and regulatory initiatives. A decision on the pending ETF filings could act as a catalyst, particularly if approval aligns with renewed institutional flows into the asset class.

Yet without definitive signals on utility, adoption, or major platform integration, DOGE may continue to exhibit a weaker correlation to Bitcoin’s broader trend movements. For now, the disavowal of government involvement removes one layer of speculative potential from Dogecoin’s narrative, reinforcing the importance of fundamentals over name-based hype.