The anticipation surrounding the US presidential election is not just limited to the political arena; it has also permeated the financial markets, particularly the cryptocurrency sector. One market analyst has confidently predicted that the surge in memecoins will continue amidst the evolving political landscape.
Dogecoin Leads the Resurgence of Memecoins on Election Day
Bitcoin (BTC), the largest cryptocurrency, is currently hovering around the $70,000 mark, marking a modest increase of 2.2% over the last 24 hours. This comes after several attempts to surpass its all-time high of $73,700. In stark contrast, Dogecoin (DOGE), the top memecoin by market capitalization, has experienced a 12% increase during the same period, showcasing its remarkable performance against the top ten cryptocurrencies.
Trump’s Victory Could Propel Dogecoin Further
Market analyst Miles Deutscher suggests that a Trump victory could further enhance Dogecoin’s positive momentum. He points to Trump’s proposed Department Of Government Efficiency (DOGE) initiative as a potential catalyst for increased visibility and liquidity for Dogecoin, potentially sparking a broader rally in the memecoin market. Deutscher predicts, “DOGE as the meme leader will drive attention and liquidity rotation to the broader meme narrative.” This growing enthusiasm could lead to a significant influx of speculative investments, driven by the fear of missing out (FOMO).
Potential Increased Scrutiny Under a Harris Administration
Deutscher also forecasts a rally in altcoins, especially memecoins, if Trump secures the presidency, noting the historical strength of these tokens leading up to elections. For instance, the largest tokens in the Solana memecoin ecosystem, Dogwifhat (WIF), Bonk Inu (BONK), and Popcat (POPCAT), saw gains of 6.3%, 8%, and 6%, respectively, on election day, outperforming the top ten cryptocurrencies.
Conversely, if Kamala Harris wins, Deutscher anticipates a different scenario. The potential for increased regulatory scrutiny on utility tokens might prompt investors to seek refuge in more speculative assets, like memecoins. Under this scenario, the fear of a crackdown similar to past initiatives targeting specific crypto assets could drive investors towards memecoins as a nihilistic alternative.
Memecoins as a Safe Haven
This shift could bolster the dominance of memecoins, particularly if traditional sectors such as decentralized finance (DeFi) face heightened regulatory scrutiny. Deutscher believes that investors might shy away from the broader altcoin market, preferring assets that have already shown resilience and strength throughout the year. Based on recent price action trends, some memecoins may be perceived as less risky than other altcoins, a sentiment gaining traction among retail investors.
Currently, Dogecoin is trading at $0.1755, with its price trend showing an upward trajectory. As the political landscape unfolds, the memecoin market is poised to adapt and evolve, drawing attention from both seasoned investors and newcomers.
