Memecoin, like Dogecoin (DOGE), Dogwifhat (WIF), and Brett (BRETT), was among the best-performing cryptocurrencies on November 6, highlighting Trump’s enthusiasm for pushing the cryptocurrency market.
Memecoin market capitalization reaches its highest level in 7 months.
Memecoin’s recent rise helped the sector’s overall market capitalization reach a seven-month high of $66.72 billion on November 6.
The last time Memcoin’s market capitalization exceeded $66 billion was on April 1, when it reached a peak of $69.8 billion. The total market capitalization 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 across the Memecoin sector has increased by over 200% over the same period, indicating the intensity of buying pressure experienced within the sector over the past 24 hours.
Dogecoin, the largest memecoin by market capitalization, led the rise, rising 14.5% in the last 24 hours and 72% in the past month. DOGE’s rival Shiba Inu (SHIB) also rose, posting a daily gain of 5%, while Ethereum-based Pepe (PEPE) gained more than 12.6% in value over the past 24 hours.
Best memecoin price/performance ratio. Source: CoinMarketCap
Trump-themed meme coins soar
Additional data from CoinMarketCap shows that the political memecoin’s market capitalization has increased 17% in the past 24 hours, surpassing $640 million.
Moreover, the 24-hour trading volume of these memecoins exceeded $400 million, an increase of 87% over the same period.
Market capitalization and trading volume of top political memecoins. Source: CoinMarketCap
The top five political memecoins by market value all rose on November 6, and most of them are associated with Trump (see picture below). Conversely, the political meme coin with the biggest decline over the past 24 hours is Harris-related.
The biggest winners and losers among political meme coins. Source: CoinGecko
The rally in memecoins, especially Trump-linked tokens, reflected optimism across cryptocurrency markets about the potential for a cryptocurrency-friendly business environment following Trump’s victory in the US presidential election.
Trump won the 2024 U.S. presidential election with 277 votes, seven more than the 270 votes needed to secure the presidency, according to data from the Associated Press at the time of publication.
During the campaign, Trump promoted himself as a pro-crypto candidate, making various promises to the cryptocurrency community. Those promises have raised industry hopes for the next president as investors take on the risk.
relevant: Cryptocurrency Community Celebrates Trump’s Election Victory
Memecoin’s OI Increase
Memecoin’s 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 past 24 hours.
PEPE recorded a nearly 40% increase in IO on the day to $148.8 million. This represents almost half of WIF’s OI of $358 million, up 8% over the same period. DOGE’s OI increased approximately 27% in the last 24 hours to $1.7 billion.
Memecoin OI chart. Source: Coinglass
Open interest refers to the total amount of derivative contracts pending that have not yet been settled. A futures contract requires the buyer to settle the contract for every seller.
The increase in Memcoin’s OI indicates bullish momentum in the market as leveraged traders open more contracts in anticipation of the price rising.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.