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As the results of the US presidential election approach, one analyst expressed confidence in the continued rise of meme currencies, especially in the context of the ongoing political scene.
Recently Social media sharing On X (formerly Twitter), Miles Deutscher asserted that dog- and cat-themed cryptocurrencies will continue to outperform the broader cryptocurrency market, regardless of whether Donald Trump or Kamala Harris emerges victorious.
Dogecoin Leads Memecoins Comeback on Election Day
Bitcoin (BTC), the largest cryptocurrency on the market, is trading near the $70,000 mark, up a modest 2.2% over the past 24 hours, after several failed attempts to breach its all-time high of $73,700 last week.
In stark contrast, Dogecoin (DOGE), the leading memecoin by market cap, rose 12% over the same period, demonstrating the sector’s performance relative to the market. Top ten cryptocurrencies.
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Deutscher notes that if Trump wins the election, Dogecoin’s positive momentum will likely increase. He cites Trump’s proposed Department of Government Efficiency (DOGE) initiative, which he believes will increase Dogecoin’s visibility and liquidity, as a catalyst that could lead to a broader launch. pool In the memcoin space.
“DOGE as a meme leader will bring attention and spin liquidity to the broader meme narrative,” he asserts. This enthusiasm may lead to a large influx of speculative investments, which is often called “fear of missing out” (FOMO).
Increased scrutiny of cryptocurrencies under the Harris administration?
Deutscher also expects that a Trump win would spark a rally in altcoins, especially memecoins, which have historically shown strength before the election.
Another clear example of this is that the largest tokens in Solana The memecoin ecosystem, Dogwifhat (WIF), Bonk Inu (BONK), and Popcat (POPCAT), saw gains of 6.3%, 8%, and 6%, respectively, on Election Day, all of which outperformed the top 10 coins on the market.
Deutscher also said that with many cryptocurrencies undergoing significant drawdowns as investors offload risks ahead of the election, they are likely to see a clear rebound if Trump succeeds in securing the presidency.
Conversely, if Kamala Harris wins, the analyst expects a different dynamic. The potential for increased regulatory scrutiny of utility tokens may prompt investors to seek further recourse Speculative assetssuch as meme currencies.
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Deutscher notes that under this scenario, fear of a crackdown, reminiscent of bottleneck initiatives targeting specific crypto assets, might prompt investors to gravitate toward nihilistic alternatives like memcoins.
Ultimately, this shift could lead to increased dominance of cryptocurrencies, especially if traditional sectors like it Decentralized finance (DeFi) is facing increasing scrutiny.
In this case, Deutscher asserts that investors may shy away from the broader altcoin market, favoring assets that have already shown resilience and strength over the year.
Based on price action trends, the analyst notes that some memecoins may be viewed as less risky than other altcoins, a sentiment that appears to be gaining momentum among retail investors.
At the time of writing, the price of Dogecoin is $0.1755.
Featured image of DALL-E, chart from TradingView.com
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