Analyst Predicts Memecoins Will Outperform Regardless of US Election Outcome
As the US presidential election approaches, analyst Miles Deutscher expresses confidence in the ongoing rise of memecoins amid the political landscape. In a recent post on X (formerly Twitter), he stated that dog-themed and cat-themed cryptocurrencies will outperform the broader crypto market, regardless of whether Donald Trump or Kamala Harris wins.
Dogecoin Leads Memecoins Resurgence On Election Day
Bitcoin (BTC), the largest cryptocurrency, is trading near $70,000, up 2.2% over the past 24 hours after failing to break its all-time high of $73,700. In contrast, Dogecoin (DOGE), the leading memecoin by market cap, surged 12% during the same period, indicating the sector's strength relative to the top ten cryptocurrencies.
Deutscher suggests that if Trump wins, Dogecoin's momentum could increase due to his proposed Department Of Government Efficiency (DOGE) initiative, which may enhance Dogecoin's visibility and liquidity, potentially leading to a broader rally in the memecoin space. He claims, "DOGE as the meme leader will drive attention and liquidity rotation to the broader meme narrative." This enthusiasm may result in significant speculative investments driven by fear of missing out (FOMO).
Increased Crypto Scrutiny Under A Harris Administration?
Deutscher forecasts that a Trump victory would trigger a rally in altcoins, especially memecoins, which have historically performed well before elections. For example, tokens in the Solana memecoin ecosystem, such as Dogwifhat (WIF), Bonk Inu (BONK), and Popcat (POPCAT), saw increases of 6.3%, 8%, and 6%, respectively, on election day, all outperforming the top ten cryptocurrencies.
If Kamala Harris wins, Deutscher anticipates increased regulatory scrutiny on utility tokens, which could lead investors to favor more speculative assets like memecoins. He notes that fears of regulatory crackdowns may push investors toward nihilistic alternatives. This shift could enhance memecoins' dominance, particularly if traditional sectors like decentralized finance (DeFi) face greater scrutiny.
According to Deutscher, investors may prefer memecoins perceived as less risky compared to other altcoins, a sentiment gaining traction among retail investors.
At the time of writing, Dogecoin trades at $0.1755.
Featured image from DALL-E, chart from TradingView.com