Trump’s pro-crypto stance has inspired confidence in investors
Dogecoin, Shiba Inu, and other meme coins surged early Wednesday after Donald Trump won the U.S. presidential election.
Trump’s victory pushed Bitcoin to reach a new all-time high of over $75,000 and boosted demand for other high-risk crypto assets.
According to CoinMarketCap, Dogecoin rose over 19%, and Shiba Inu gained nearly 7% amid the election rally.
“Trump has largely been seen as extremely positive for the cryptocurrency markets,” said Chris Chunk, CEO at Titan.
“Any indication of a possible victory will likely push prices up extremely quickly in anticipation of a flood of capital being deployed.”
High risks and rewards in the meme coin market
The recent surge in meme coins shows a growing appetite for high-risk investments, driven by Trump’s vocal support for the crypto market.
His stance has given rise to what some analysts are calling a “Trump trade,” as he has positioned himself as a vocal advocate for cryptocurrency, contrasting with his opponent’s less-defined stance on digital assets.
Analysts caution, though, that memecoins carry significant risks along with their potential rewards. “In the long term, there will be very few winners in the memecoin market,” said Rasmussen, highlighting the challenges of finding lasting success in this fast-moving sector.
FOMO could drive meme coin demand further
Analysts say the fear of missing out on gains may drive prices even higher, as Trump’s policies seem favorable to crypto.
Nic Puckrin, CEO of Coin Bureau, noted that part of Dogecoin’s rise could be due to “the very real prospects that Elon Musk could be appointed to head the Department of Government Efficiency in a Trump admin.”
Similarly, Ryan Rasmussen from Bitwise Asset Management argued that he is “not surprised to see [meme coins] skyrocketing” due to their low market caps and liquidity.
However, numerous low-profile meme coins are gaining traction at the moment. One of them is Pepe Unchained (PEPU), a recent launch that raised more than $24 million in its presale phase. The project aims to build a layer 2 network focused on faster transactions and lower commissions, with a staking program offering returns of up to 96% APY.
Another is Crypto All-Stars (STARS), which has strong community backing. Its unique “MemeVault” feature allows holders to stake a wide variety of meme tokens, with potential returns reportedly as high as 517% APY.
Finally, Flockerz (FLOCK) has captured interest with its active community and “vote to win” model. This setup allows holders to participate in project decisions and rewards them for voting, attracting younger investors interested in social engagement with cryptocurrencies.
