As a seasoned researcher with extensive experience in the volatile world of cryptocurrencies, I find myself intrigued by the latest developments in the memecoin market, particularly given its connection to political events such as the US presidential election. The surge in the market cap and trading volume of memecoins like Dogecoin, Dogwifhat, Brett, and Trump-themed coins is nothing short of astounding. It’s a testament to the power of social media influence and the unpredictability of market trends.
On November 6th, Memecoins such as Dogecoin (DOGE), Dogewhatever (WIF), and Bretcurrency (BRETT) stood out as top performers in the cryptocurrency world, reflecting the excitement stirred by Trump’s influence that has been driving the market.
Memecoin market cap hits seven-month high
On November 6, the recent surge in meme-based cryptocurrencies pushed their collective market value to a seven-month peak of approximately $66.72 billion.
24 hours ago, the total value of meme coins on the market surpassed $66 billion for the last time, peaking at a staggering $69.8 billion on April 1st. Remarkably, this sector of cryptocurrencies has seen a 21% increase in its overall worth within the past day.
Over the last day, the overall trading activity in the memecoin market has skyrocketed by over 200%, suggesting a substantial surge in buying interest within this sector during the past 24 hours.
Over the past day, Dogecoin, the top meme cryptocurrency by market capitalization, experienced a significant surge of approximately 14.5%. Over the course of the past month, its growth has been even more impressive, increasing by around 72%. Meanwhile, competitor Shiba Inu (SHIB) also saw gains, rising by about 5% within the same timeframe. Additionally, Pepe, a cryptocurrency built on the Ethereum network, saw an increase of over 12.6% in its value during the last 24 hours.
Trump-themed memecoins skyrocket
Data from CoinMarketCap shows a rise in the total value of political memecoins as well, growing by 17% within the past day and reaching a staggering $640 million market cap.
Additionally, it’s worth noting that the daily trading volume for these memecoins surpassed a staggering $400 million, marking an impressive 87% increase compared to the previous period.
On November 6th, the leading five political meme-coins by market value all experienced growth, with many of these coins linked to Trump (as illustrated in the figure below). In contrast, the political meme-coins that saw the steepest drops over the past 24 hours are connected to Harris.
In simpler terms, the surge in meme coins, specifically those linked to Donald Trump, reflected an increase in confidence within the cryptocurrency market about the potential for a pro-cryptocurrency business climate if Trump won the 2020 U.S. Presidential Election.
As of the release date, statistics from the Associated Press indicate that Donald Trump clinched the 2024 U.S. presidency by garnering 277 electoral college votes – seven more than the necessary 270 for winning the election.
Throughout his campaigns, Trump positioned himself as a supporter of cryptocurrencies, offering numerous assurances to the crypto sector. This pro-crypto stance raised optimism within the industry regarding the new administration, with investors becoming more willing to take on risk.
Related: Crypto community celebrates Trump’s election victory
Memecoins see an increase in OI
On November 6th, a surge in memecoins was preceded by a rise in open interest (OI). Notably, NEIRO saw a significant jump of 47% in its OI over the previous 24 hours, spearheading this upward trend.
On a single day, PEPE‘s Instrumental Open Interest (IO) surged close to 40%, reaching an impressive $148.8 million. This figure is nearly half of WIF’s current IO of $358 million, which itself experienced an increase of around 8% over the same timeframe. Meanwhile, DOGE’s IO stood at a substantial $1.7 billion, marking a rise of approximately 27% within the previous 24 hours.
The term “Open Interest” signifies the overall quantity of derivative contracts still outstanding and waiting to be finalized. Essentially, in a futures agreement, one must find a counterpart who will fulfill their obligation to settle the contract.
As an analyst, I’ve noticed a significant surge in Open Interest (OI) for memecoins, which suggests a build-up of optimistic sentiment in the market. This could be due to leverage traders actively increasing their contract positions, betting on a potential rise in the prices of these coins.
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2024-11-06 16:04