Dogecoin, memecoins outperform crypto market as Trump wins US election

Memecoins like Dogecoin ( DOGE ), Dogwifhat ( WIF ), and Brett ( BRETT ) are among the best-performing cryptocurrencies on Nov. 6, highlighting the Donald Trump-fueled enthusiasm that propelled the crypto market.

Memecoin market cap hits seven-month high

The latest uptick in memecoins has seen the total market capitalization of the sector expand to reach a seven-month high of $66.72 billion as of Nov. 6.

The last time the memecoin market cap was above $66 billion was on April 1, when it reached a high of $69.8 billion. The aggregate market value of cryptocurrencies in this sector is up 21% over the last 24 hours.

Memecoin market capitalization and daily trading volume. Source: CoinMarketCap

The total daily trading volume across the memecoin sector has increased by more than 200% over the same period, indicating the intensity of the buy-pressure experienced within the sector over the past 24 hours.

Dogecoin, the largest memecoin by market capitalization, led the gains , gaining 14.5% over the last 24 hours and 72% over the last month. DOGE’s rival Shiba Inu ( SHIB ) was up as well, recording 5% daily gains, while Ethereum-based Pepe ( PEPE ) added more than 12.6% to its value over the last 24 hours.

Top memecoins’ price performance. Source: CoinMarketCap

Trump-themed memecoins skyrocket

Additional data from CoinMarketCap also reveals an uptick in the market capitalization of political memecoins, which increased by 17% over the last 24 hours to surpass $640 million.

Moreover, the 24-hour trading volume of these memecoins exceeded $400 million, up by 87% over the same timeframe.

Market cap and trading volume of top political memecoins. Source: CoinMarketCap

The top five political memecoins by market value were all up on Nov. 6, most of which are related to United States President-elect Trump (see the figure below). Conversely, the political memecoins with the sharpest declines in the past 24 hours are related to Vice President Kamala Harris, who had run against Trump for the presidency.

Top gainers and losers among political memecoins. Source: CoinGecko

The rally in memecoins, particularly Trump-related tokens, mirrored the optimism across the crypto market regarding the possibility of a crypto-friendly business environment following Trump’s victory in the US presidential election.

At the time of publication, data from the Associated Press shows that Trump has won the 2024 US presidential election with 277 electoral college votes, seven above the 270 required to secure the presidency. 

During his campaign, Trump sold himself as a pro-crypto candidate, making a variety of promises to the crypto community. These promises have boosted the industry’s hopes for the incoming presidency as investors go risk-on. 

Related: Crypto community celebrates Trump’s election victory

Memecoins see an increase in OI

The rally in memecoins on Nov. 6 was preceded by an increase in open interest (OI), with NEIRO  leading the charge with a 47% increase in OI over the last 24 hours.

Open interest refers to the total amount of pending derivative contracts that have not yet been settled. In a futures contract, for every seller, a buyer is required to settle the contract.

PEPE saw its IO jump by nearly 40% on the day to $148.8 million, nearly half of WIF’s $358 million in OI, which had increased by 8% over the same period. DOGE’s OI was standing at $1.7 billion, up approximately 27% over the last 24 hours.

Memecoin OI chart. Source: CoinGlass

The rise in OI for memecoins indicates bullish momentum in the market as leverage traders open more contracts in anticipation of increases in price.