Memecoins, including Dogecoin and Shiba Inu, saw significant spikes on Wednesday following Donald Trump’s election victory. Dogecoin jumped over 15%, while Shiba Inu rose by 6%, coinciding with Bitcoin’s new peak above $76,000.
According to NBC News projections, Trump defeated his opponent, Vice President Kamala Harris, securing 276 Electoral College votes and sweeping key battleground states.
Chris Chung, CEO of decentralized exchange aggregator Titan on the Solana blockchain, noted, “With the crypto market’s low volatility pre-election, many were awaiting clarity on future regulatory conditions. Now, with election results in, we’re seeing major movements, especially in memecoins.”
Leading up to the election, memecoins and AI-based crypto tokens outperformed other cryptocurrencies, reflecting heightened retail investor interest. Ryan Rasmussen, Head of Research at Bitwise Asset Management, remarked, “Increased memecoin activity suggests high retail investor engagement and appetite for riskier investments.”
Rasmussen also warned long-term investors about the volatility in the memecoin market. “With countless coins launching daily, betting on specific memecoins can be as unpredictable as a lottery.”
Trump is considered favorable toward cryptocurrency markets, with expectations of a crypto-friendly Securities and Exchange Commission. This outlook has further fueled positive sentiment for the sector.
The Dogecoin rally might also stem from Trump’s recent mention of appointing Elon Musk to a government efficiency role. Musk, famously dubbed the “Dogefather,” has previously impacted Dogecoin’s price with his public statements. His role, which Trump referred to as leading a “Department of Government Efficiency” or “D.O.G.E.,” could have a unique influence on Dogecoin’s market position.
With Trump’s re-election, a wave of crypto investment may follow, as the market anticipates supportive policy changes benefiting digital assets.
