Memecoins like Dogecoin, Dogwifhat, and Brett are among the best-performing cryptocurrencies on November 6, driven by the heat from Trump boosting the crypto market.
The latest rally of memecoins saw the total market capitalization of the sector reach a seven-month high of $66.72 billion on November 6.
The last time the memecoin market capitalization exceeded $66 billion was on April 1, with a peak of $69.8 billion. The total market value of cryptocurrencies in this sector has increased by 21% in the past 24 hours.
Memecoin market capitalization and daily trading volume | Source: CoinMarketCap
The total daily trading volume across the memecoin sector increased by over 200% in the same period, indicating massive buying pressure in the past 24 hours.
Dogecoin, the largest memecoin by market capitalization, led with a 14.5% increase in 24 hours and 72% over the past month. DOGE's rival, Shiba Inu, also recorded a 5% increase on the day, while Ethereum-based Pepe surged over 12.6% compared to 24 hours earlier.
Performance of top memecoins | Source: CoinMarketCap
Trump-themed memecoins surge
Data from CoinMarketCap also shows that the market capitalization of political memecoins increased by 17% in the past 24 hours, surpassing $640 million.
Furthermore, the 24-hour trading volume of these memecoins surpassed $400 million, up 87% in the same time frame.
Market capitalization and trading volume of major political memecoins | Source: CoinMarketCap
The top five political memecoins by market capitalization all increased on November 6, most of which are related to Trump. In contrast, the political memecoins with the largest declines in the past 24 hours are all related to Harris.
Top projects with the largest gains and losses among political memecoins | Source: CoinGecko
The price surge of memecoins, particularly Trump-related tokens, reflects optimism across the cryptocurrency market about the potential for a crypto-friendly environment following his victory in the U.S. presidential election.
At this time, data from the Associated Press shows that Trump has won the 2024 U.S. presidential election with 277 electoral votes, seven more than the 270 needed.
Throughout the campaigns, Trump has marketed himself as the crypto-friendly candidate, making numerous promises to the cryptocurrency community. These promises have fueled the industry's hopes for the upcoming presidential term as investors take on risks.
Memecoin sees an increase in OI
The memecoin price rally on November 6 occurred after an increase in open interest (OI), with NEIRO leading with an OI increase of 47% in the past 24 hours.
PEPE saw IO increase nearly 40% in a day to $148.8 million. WIF's OI also increased by 8% during the same period, reaching $358 million. DOGE's OI stands at $1.7 billion, up about 27% in 24 hours.
OI chart of Memecoin | Source: CoinGlass
Open interest (OI) refers to the total number of outstanding derivative contracts that have yet to be settled. In futures contracts, for every seller, there must be a buyer to settle the contract.
The increase in OI of memecoins indicates bullish momentum in the market as traders open more contracts with the expectation that prices will rise higher.