Memecoins like Dogecoin (DOGE), Dogwifhat (Wi-Fi), and Brett (BRETT) are among the best-performing cryptocurrencies on November 6, highlighting the Donald Trump-fueled enthusiasm that has propelled the crypto market.
Memecoin Market Cap Hits Seven-Month High
The latest increase in memecoins saw the sector’s total market capitalization increase to a seven-month high of $66.72 billion as of November 6.
The last time memecoin’s market cap exceeded $66 billion was on April 1, when it reached a high of $69.8 billion. The overall market value of cryptocurrencies in this sector increased by 21% in the last 24 hours.
Memecoin market capitalization and daily trading volume. Source: CoinMarketCap
Total daily trading volume in the memecoin sector increased by over 200% during the same period, indicating the intensity of buying pressure felt in the sector over the past 24 hours.
Dogecoin, the largest memecoin by market capitalization, led the gainsgaining 14.5% over the last 24 hours and 72% over the last month. DOGE’s rival, Shiba Inu (SHIB) also rose, recording daily gains of 5%, while Ethereum-based Pepe (PEPE) added more than 12.6% to its value in the last 24 hours.
Better price performance of memecoins. Source: CoinMarketCap
Trump-themed memecoins soar
Additional data from CoinMarketCap also reveals an uptick in the market capitalization of political memecoins, which rose 17% over the past 24 hours to exceed $640 million.
Additionally, the 24-hour trading volume of these memecoins exceeded $400 million, up 87% over the same period.
Market capitalization and trading volume of major political memecoins. Source: CoinMarketCap
The top five political memecoins by market value were all up on November 6, with most linked to United States President-elect Trump (see figure below). Conversely, the political memecoins that saw the biggest drops over the past 24 hours were linked to Vice President Kamala Harris, who ran against Trump for president.
Main winners and losers among political memecoins. Source: CoinGecko
The rally in memecoins, particularly Trump-related tokens, reflects the crypto market’s optimism about the possibility of a crypto-friendly trading environment. following Trump’s victory in the American presidential election.
At the time of publication, data from the Associated Press watch that Trump won the 2024 US presidential election with 277 Electoral College votes, seven more than the 270 required to secure the presidency.
During his campaign, Trump presented himself as a pro-crypto candidate, thus making a variety of promises to the crypto community. These promises have boosted the sector’s hopes for the next presidency as investors take risks.
Related: Crypto Community Celebrates Trump Election Victory
Memecoins see an increase in OI
The memecoin rally on November 6 was preceded by an increase in open interest (OI), with NEIRO leading the way 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 settled. In a futures contract, for each seller, a buyer is obligated to settle the contract.
PEPE saw its OI jump nearly 40% on the day to $148.8 million, almost half of WIF’s $358 million OI, which had increased 8% over the same period. DOGE’s OI stood at $1.7 billion, up approximately 27% over the past 24 hours.
Memecoin OI chart. Source: CoinGlass
The increase in OI for memecoins indicates bullish momentum in the market as leveraged traders open more contracts in anticipation of price increases.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.