Memecoins Surge as US Election Day Approaches

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Memecoins, a fun and often unpredictable category of cryptocurrency themed around internet memes or popular figures, usually gain value from community support rather than practical use. This makes them highly volatile. Recently, as the United States approached election day, memecoins saw a significant price surge. Experts caution, however, that people should only invest money they’re willing to lose.

Here’s a breakdown of what happened with memecoins and the wider crypto market before election day:

Memecoin Market Hits New Highs

Between November 4th and 5th, the total market value of memecoins surged by 4.3%, reaching $62.3 billion. According to CoinGecko, a trusted crypto aggregator, daily trading volume also climbed to around $9.3 billion. This increase occurred across the board, not just with political-themed tokens, as election hype spread.

Below are some of the top-performing memecoins:

1. Dogecoin
Dogecoin, the leading memecoin by market value, surged by 12.1% on November 4th, with its price rising to $0.1685 and its market cap hitting $24.7 billion. Dogecoin currently ranks 8th on CoinGecko’s top 100 list of cryptocurrencies by market cap.

2. Shiba Inu
Shiba Inu joined the memecoin rally, increasing by 5.7% between November 4th and 5th. As of this report, it’s trading at $0.000017, with a market cap of $10.4 billion.

3. Pepe
The frog-themed Pepe coin saw a smaller gain, rising only 1.3% over the past day. Its market cap remains around $3.4 billion at the time of reporting.

4. MOG Coin
Making a notable entrance into the top 100 crypto assets list after an 11% price surge is the MOG Coin, further reflecting the excitement surrounding memecoins.

While Other Cryptos Slow Down, Memecoins Soar

Interestingly, as other cryptocurrency assets experienced a cooldown—visible in the overall crypto market’s performance—memecoins were among the few categories enjoying a bull rally as election day approached. Over the two days, the total market value of cryptocurrencies dropped by $33 billion, reaching $2.38 trillion.

The Bitcoin spot exchange-traded fund (ETF) market also witnessed a sharp outflow, with $541.1 million leaving the funds. This marked the second-largest withdrawal on record, as many investors proceeded cautiously due to the then-upcoming US election.

Memecoins, however, demonstrated their strong community-driven nature by surging during this period of broader market hesitation.

Post-Election Speculations

Now that the election is over, the crypto space remains watchful, anticipating how President Donald Trump’s tenure might influence the fate of cryptocurrencies.