DOGE price could see impressive growth if Elon Musk leverages the Dogecoin blockchain for U.S. Treasury transactions.
Billionaire Elon Musk has suggested moving U.S. Treasury transactions onto blockchain technology, and this idea has triggered discussion among the blockchain community and within government circles.
Could D.O.G.E Consider Dogecoin?
This is part of the Tesla CEO’s effort to cut down on government spendings through his Department of Government Efficiency (D.O.G.E) agency. However, the suggestion has been met with mixed sentiments.
His idea came after businessman Mario Nawfal asked on X if the Treasury should adopt blockchain in response to allegations of fraudulent payments. Musk responded in favor of the proposal, triggering speculation about which blockchain might be considered if DOGE goes through with this.
Yes!
— Elon Musk (@elonmusk) February 2, 2025
Reports indicate that Dogecoin, Musk’s favorite crypto project, could be a potential candidate. A Feb. 2 report from Forbes referred to Dogecoin as Musk’s “pet project,” essentially mentioning it as a possible option.
Further, last week, a Tesla fan account and Dogecoin enthusiast also suggested that processing Treasury payments through Dogecoin would increase transparency.
Musk’s previous comments have also added to the speculation. In August 2022, the billionaire praised Dogecoin’s efficiency, claiming it handled transactions better than Bitcoin. He also criticized Bitcoin’s energy consumption, arguing that Dogecoin was a more practical alternative.
This has bolstered speculation that Dogecoin might be a possible candidate of consideration if Elon Musk does go ahead with the plan. In addition, D.O.G.E leveraging the Dogecoin blockchain to improve efficiency would quite frankly be poetic.
DOGE Price if US Treasury Used Dogecoin Blockchain
For context, the U.S. Treasury processes about $5 trillion annually in government payments, which translates to nearly $411 billion per month and around $13.7 billion per day. If Dogecoin processes these transactions, it could massively impact its price.
However, the extent of such a prospective impact remains unclear. As a result, we sought the opinion of AI chatbot ChatGPT. The OpenAI project analyzed the scenario and outlined potential price changes based on different market outcomes.
ChatGPT rightly explained that government adoption would likely increase Dogecoin’s demand. More institutions might invest in Dogecoin, boosting its liquidity and long-term stability.
With Dogecoin currently trading for $0.2566, handling Treasury payments could push its market cap much higher. ChatGPT proposed that if just 5% of the $5 trillion in transactions were held in Dogecoin at any given time, the market cap could rise toward $250 billion.
The chatbot estimated three possible price scenarios based on different levels of adoption. First, in a moderate growth scenario, if Dogecoin’s market cap increased 5x, its price could reach $1.28.
However, ChatGPT further suggested that if adoption surged higher amid an extreme growth environment and the market cap grew 10x, Dogecoin might climb to $2.56. Meanwhile, in a highly speculative scenario, if hype drove mass investment similar to past crypto booms, the price could exceed $5.00.
Despite these projections, challenges could prevent Dogecoin from reaching these price levels. ChatGPT warned that high transaction volumes could expose inefficiencies in Dogecoin’s blockchain.
Besides this, government regulations might also limit its involvement in Treasury transactions. Additionally, Dogecoin’s unlimited supply could dilute price gains unless demand consistently outpaces issuance. However, these projections remain highly speculative.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
