When Trump won the US election, Dogecoin, memecoins outperformed the crypto market
Memecoins such as Dogecoin (DOGE), Dogwifhat (WIF) and Brett (BRETT) were among the best-performing cryptocurrencies on November 6, highlighting the enthusiasm fueled by Donald Trump in the crypto market.
Memecoin market value has reached a seven-month high
The recent surge in memecoins has pushed the sector's total market capitalization to a seven-month high of $66.72 billion as of November 6.
The last time memecoin's market cap was above $66 billion was on April 1st, which reached a peak of $69.8 billion. The total market value of cryptocurrencies in this sector has increased by 21% in the last 24 hours.
Memecoin market capitalization and daily trading volume. Source: CoinMarketCap
The total daily trading volume in the Memcoin sector has increased by over 200%.
Dogecoin, the largest memecoin by market capitalization, led the gains, gaining 14.5% in the last 24 hours and 72% in the last month. DOGE rival Shiba Inu (SHIB) also rallied, posting a 5% daily gain, while Ethereum-based PEPE (PEPE) increased its value by more than 12.6% in the past 24 hours.
Top memecoins price performance. Source: CoinMarketCap
Trumpet-themed memecoins skyrocketed
Additional data from CoinMarketCap shows a significant increase in the market capitalization of political memcoins, which increased by 17% in the last 24 hours to $640 million.
Moreover, the 24-hour trading volume of these memecoins exceeded 400 million dollars, an increase of 87% in the same period.
High political memecoins market cap and trading volume. Source: CoinMarketCap
The top five political memecoins by market value were all on November 6, most of which are related to US-elect Trump (see image below). In contrast, political memecoins with the biggest declines in the last 24 hours are related to Vice President Kamala Harris, who is running against Trump for the presidency.
The top winners and losers of political memecoins. Source: CoinGecko
The rally in memecoins, especially Trump-related tokens, reflected the optimism in the crypto market that a crypto-friendly trading environment could exist following Trump's victory in the US presidential election.
According to Associated Press data at the time of publication, Trump won the 2024 US presidential election with 277 Electoral College votes, which is 7 more than the 270 needed to confirm his presidency.
During the campaign, Trump sold himself as a pro-crypto candidate and made various promises to the crypto community. These promises have raised hopes for the industry's next president as investors become more risk-averse.
Related: Crypto Community Celebrates Trump's Election Victory
Memecoins will see an increase in OI.
In the year The rally in memecoins on November 6 was preceded by increasing open interest (OI), NEIRO led by OI's 47% increase in the last 24 hours.
Open interest refers to the total amount of pending derivative contracts that have not yet been completed. In a futures contract, for each seller, the buyer is required to settle the contract.
PEPE saw a nearly 40% jump to $148.8 million on the day, nearly half of WIF's $358 million in OI, which was up 8% over the same period. DOGE's OI stood at $1.7 billion, up roughly 27% over the past 24 hours.
Memecoin OI Chart Source: CoinGlass
The increase in Memecoins' OI indicates high momentum in the market as traders open more contracts in anticipation of a price increase.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
