As the results of the U.S. presidential election approach, an analyst is expressing confidence in the continued rise of memecoins, particularly in the context of the ongoing political landscape.
In a recent post on social media X (formerly Twitter), Miles Deutscher asserted that dog and cat-themed cryptocurrencies will continue to perform better than the overall cryptocurrency market, regardless of whether Donald Trump or Kamala Harris wins.
Dogecoin leads the revival of Memecoin on election day.
Bitcoin (BTC), the largest cryptocurrency in the market, is trading near the $70,000 mark, with a modest increase of 2.2% in the past 24 hours, following several unsuccessful attempts to break through the all-time high of $73,700 last week.
In stark contrast, Dogecoin (DOGE), the leading memecoin by market capitalization, surged 12% during the same period, demonstrating the performance of the sector compared to the top ten cryptocurrencies.
Deutscher believes that if Trump wins the election, the positive momentum of Dogecoin is likely to increase. He cites the Government Efficiency Department (DOGE) initiative proposed by Trump, which he believes will increase the visibility and liquidity of Dogecoin, as a catalyst that could ignite a broader rally in the memecoin space.
"DOGE as the leading meme will attract attention and liquidity rotation into the broader meme story, he asserted." This enthusiasm may lead to a significant speculative investment flow, often referred to as "fear of missing out" (FOMO).
Deutscher also predicts that Trump's victory will trigger a price surge of altcoins, especially memecoins, which often see significant price increases leading up to elections.
Another clear example of this is the largest tokens in the Solana memecoin ecosystem, Dogwifhat (WIF), Bonk Inu (BONK), and Popcat (POPCAT), which saw increases of 6.3%, 8%, and 6% respectively on election day, all outperforming the top ten cryptocurrencies in the market.
Deutscher also mentioned that with many cryptocurrencies significantly declining as investors reduce risk ahead of the election, there is a likelihood of a marked recovery if Trump wins the presidency.
Conversely, if Kamala Harris wins, the analyst predicts a different move. The potential increase in regulatory scrutiny over utility tokens could drive investors to seek refuge in more speculative assets, such as memecoins.
Deutscher notes that under this scenario, the fear of suppression, reminiscent of initiatives targeting certain cryptocurrency assets, could lead investors to turn towards nihilistic alternatives like memecoins.
Ultimately, this shift could increase the dominance of meme coins, especially if traditional sectors like decentralized finance (DeFi) face closer scrutiny.
In this case, Deutscher asserts that investors may shy away from the broader altcoin market, favoring assets that have proven resilience and strength throughout the year.
Based on price volatility trends, the analyst points out that some memecoins may be considered less risky than other altcoins, a view that seems to be of interest to retail investors.
