Dogecoin (DOGE) Poised to Rebound from Its 2024 Slump as Elon Musk and President Donald Trump Discuss a Taxpayer Stimulus Plan

The proposal, dubbed the “DOGE Dividend,” aims to distribute $5,000 checks using savings from Musk’s Department of Government Efficiency (DOGE).

Dogecoin (CRYPTO: DOGE) might see a new lease of life after Elon Musk and former President Donald Trump discussed a plan to return some tax savings to citizens.

Here's what happened: Trump proposed allocating 20% of the savings from Musk's Department of Government Efficiency (DOGE) back to taxpayers. The move comes as officials aim to utilize the savings generated by the department.

According to Trump, the savings amounted to $55 billion over 31 days, which translates to roughly $359 per taxpayer. If realized, a 20% payout would inject around $11 billion into the economy.

However, legal experts expressed skepticism about the proposal, as there appears to be no clear authorization for such dividends. Moreover, officials are concerned about reigniting inflation, which had stabilized near 3.1% in 2024.

Despite the skepticism, crypto analysts believe the stimulus could amplify crypto demand. As a point of reference, stimulus checks in 2020 led to a surge in Bitcoin (CRYPTO: BTC) and Dogecoin.

According to James Fishback, a key advisor, a DOGE dividend would inject billions into the economy, potentially driving retail investors toward crypto. Musk also confirmed that he will be "discussing the plan with leadership."

Now what: While the proposal bodes well for Dogecoin, it's important to note that the meme coin is still trading at a price that's 55% lower than its 2024 high. This reflects the broader struggles faced by meme coins.

However, the announcement of the stimulus plan did lead to a spike in trading volumes for DOGE, which surged by 40%.

As the situation unfolds, traders will be keeping a close eye on Musk's or Trump's next move, which could serve as a potential turning point for the meme coin's trajectory.