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As the US presidential election results loom, one analyst is expressing confidence in the continuous surge of memecoins, particularly in the context of the ongoing political landscape.
In a recent social media post on X (formerly Twitter), Miles Deutscher asserted that dog-themed and cat-themed cryptocurrencies will continue outperforming the broader crypto market, regardless of whether Donald Trump or Kamala Harris emerges victorious.
Dogecoin Leads Memecoins Resurgence On Election Day
Bitcoin (BTC), the largest cryptocurrency on the market, is trading near the $70,000 mark, up a modest 2.2% over the past 24 hours, after several failed attempts to break above its all-time high of $73,700 last week.
In stark contrast, Dogecoin (DOGE), the leading memecoin by market capitalization, has surged by 12% during the same period, demonstrating the sector’s performance relative to the top ten cryptocurrencies.
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Deutscher suggests that if Trump wins the election, Dogecoin’s positive momentum will likely increase. He cites Trump’s proposed Department Of Government Efficiency (DOGE) initiative, which he believes will increase Dogecoin’s visibility and liquidity, as a catalyst that could spark a broader rally in the memecoin space.
“DOGE as the meme leader will drive attention and liquidity rotation to the broader meme narrative, he asserts.” This enthusiasm could lead to a significant influx of speculative investments, often called “fear of missing out” (FOMO).
Increased Crypto Scrutiny Under A Harris Administration?
Deutscher further predicts that a Trump victory would spark a rally in altcoins, especially memecoins, which have historically shown strength leading up to elections.
Another clear example of this is that the largest tokens in the Solana memecoin ecosystem, Dogwifhat (WIF), Bonk Inu (BONK) and Popcat (POPCAT), saw surges of 6.3%, 8% and 6% respectively, on election day, all of which outperformed the top ten cryptocurrencies in the market.
Deutscher also said that with many cryptocurrencies undergoing significant drawdowns as investors de-risked ahead of the election, they would likely experience a pronounced bounce if Trump secures the presidency.
Conversely, if Kamala Harris wins, the analyst foresees a different dynamic. The possibility of increased regulatory scrutiny on utility tokens could prompt investors to seek refuge in more speculative assets, such as memecoins.
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Deutscher notes that under this scenario, the fear of a crackdown, reminiscent of the operation chokepoint initiatives targeting certain crypto assets, may lead investors to gravitate towards nihilistic alternatives like memecoins.
Ultimately, this shift could increase meme coins dominance, especially if traditional sectors like decentralized finance (DeFi) face heightened scrutiny.
In this case, Deutscher asserts that investors might shy away from the broader altcoin market, favoring assets that have already demonstrated resilience and strength throughout the year.
Based on price action trends, the analyst points out that some memecoins may be perceived as less risky than other altcoins, a sentiment that appears to be gaining traction among retail investors.
At the time of writing, Dogecoin trades at $0.1755.
Featured image from DALL-E, chart from TradingView.com