Meme Coin Market Doubles in a Month During Trump-era Boom

Can meme coins maintain this momentum after doubling their market cap in 30 days? Or is this just an exaggeration linked to Trump’s return?

Meme coins are exploding

Since the election of Donald Trump, known for his positive stance on crypto, as the 47th President of the United States, the crypto market has seen a new wave of bullish momentum. Bitcoin (BTC) continued its upward journey in the price discovery phase, reaching an all-time high of $93,400 on November 13.

This rally also spread to the meme coin market, where the total market cap more than doubled in less than a month. On October 18, the figure was $55 billion; it is now over $124 billion, an increase of over 100%.

Familiar names such as Dogecoin (DOGE), Bonk (BONK) and Pepe (PEPE) have been at the forefront of this rise, recording significant gains.

In the last 30 days, DOGE increased by 166% and traded at $0.375. PEPE was up over 100% to $0.000021, while BONK was up 116% to $0.000048.

Meanwhile, Solana-based meme coins like Squirrel Peanut (PNUT) and Moo Deng (MOODENG) have also attracted attention with their viral appeal.

PNUT, an homage to Peanut, a squirrel controversially euthanized by the New York State Department of Environmental Conservation, surged 336% to trade at $1.60.

Similarly, MOODENG, inspired by the internet sensation Thai pygmy hippo, traded at $0.55, a staggering 555% increase.

What’s next in the meme coin market? Can this momentum continue, or will the meme money excitement finally run its course? Let’s find out.

Understanding the rise of meme coin

The recent rise in the meme coin market can be attributed to several interconnected factors. Let’s break these down one by one.

BONK’s token burning plan

BONK DAO’s announcement on November 15 of its plan to burn 1 trillion BONK tokens by December 25 was a major driver behind the token’s growth.

BONK 3-month price chart | Source: crypto.news

A common strategy in crypto markets, token burning involves sending tokens to an inaccessible address, effectively removing them from circulation. Token burns reduce available supply, creating scarcity and causing prices to rise if demand remains constant or increases.

The market reacted quickly to this announcement, pushing BONK to overtake Dogwifhat (WIF) as the most valuable Solana-based meme coin in terms of market cap on November 17.

Solana’s growing role

Solana (SOL) witnessed record activity driven by meme coins. Data shared by analyst Patrick Scott revealed that five of the top ten protocols by fees in the last 24 hours as of November 18 were hosted on Solana; This implied that meme coins increased the adoption of Solana by increasing user engagement.

Due to the Memecoin craze, half of the top 10 crypto protocols by fees in the last 24 hours were on Solana.

This is either a huge top signal or a radical shift in market activity. pic.twitter.com/iKAbqSYx6j

—Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) 17 November 2024

Dogecoin and market sentiment

On November 12, President-elect Trump announced the creation of the Department of Government Efficiency (DOGE). While this department has no direct ties to crypto DOGE, the coincidence of the acronym has reignited interest in Dogecoin, a token already backed by public support from figures like Elon Musk in the past.

Following this announcement, Dogecoin hit a multi-year high of $0.4359 and is trading at $0.375 as of this writing, up 336% from $0.10 in a month.

DOGE 3-month price chart | Source: crypto.news

The price action was further fueled by Musk’s tweet, “Threat to bureaucracy, not democracy,” which was interpreted as a nod to Dogecoin’s community-focused ethos.

More earnings coming?

As the meme coin market continues to attract attention, analysts predict next moves by decoding patterns. So what exactly does the data suggest?

Dogecoin: Aiming for $1?

Latest analysis reveals that DOGE forms a Descending Triangle formation. While this may initially indicate consolidation, a historical review shows that this setup often heralds major bullish moves.

One trader recently noted: “$DOGE is currently breaking out and could rally to another high.” Potential upside? A target of $0.80 would surpass the all-time high of $0.73 set in 2021.

One of the factors driving this belief is its newfound political importance. Even if the connection was purely coincidental, the establishment of the Department of Public Efficiency attracted public attention.

As crypto analyst Miles Deutscher noted, “Mindshare of the ticker DOGE will only increase once Trump takes office.”

Controversial opinion:

According to me $DOGE flips $LEFT becomes the 3rd largest token after this cycle $BTC And $ETH.

Mindshare of the DOGE acronym will only increase once Trump takes office and changes begin to be made.

Easy purchase for normals.

$1 seems obvious. pic.twitter.com/SYOHbiStBU

— Miles Deutscher (@milesdeutscher) 16 November 2024

The sentiment is that DOGE could be an easy entry point for new investors (“norms”) and a $1 target is no longer a distant possibility. However, this will depend on sustained market interest and wider adoption.

Bonk: Solana breast star

While Bonk solidifies its position as the most valuable Solana-based meme coin, investors warn of short-term risks. As one analyst put it, “The price is pretty overbought right now, so I don’t think this is a good level for long-term trading.”

BONK 6-month price chart | Source: TradingView

$BONK The price is completing the 3rd blue wave of the uptrend.

The price is very overbought right now, so I don’t think this is a good level for long-term trading. I will wait for the wave 4 correction. A green support test would be ideal to look for long trading opportunities.

(during the day… pic.twitter.com/vp7CpVp6QZ

— Stoic Crypto Trader (@stoic_traders) November 14, 2024

Investors are waiting for a fourth-wave correction, a temporary decline in price that usually signals healthier long-term growth. If BONK follows historical patterns, this pullback could pave the way for new highs after the market digests current gains.

Pepe aims for more earnings

Pepe’s price action was quite technical and his moves aligned perfectly with the Fibonacci retracement and expansion levels.

PEPE 3-month price chart | Source: crypto.news

One analyst recently tweeted: “PEPE followed the fractal perfectly, reaching the expected 1.618 extension at $0.00002484.” These extensions are important markers in technical analysis and often point to where prices might go next.

$PEPE It followed the fractal perfectly, reaching the expected extension of 1.618 at $0.00002484.

I’m still far from the lower range as I expect this to continue. The main targets above remain $0.00003655-$0.00005997. pic.twitter.com/1TOOWSqIwU

— Lourenço VS (@lourenco_vs) 18 November 2024

Their targets for PEPE are set at $0.00003655 and $0.00005997; this represents potential gains of 68% and 144%, respectively, from current levels. However, overbought conditions may lead to short-term corrections before these targets are realized.

The road ahead

The future of the meme coin market is inextricably tied to the performance of Bitcoin, especially as BTC continues its price discovery phase.

But there are risks. While Bitcoin’s price discovery has underpinned the meme coin’s rise, its volatility remains a constant threat.

Meme coins, by their nature, rely heavily on sentiment and speculative trading rather than fundamental value.

If Bitcoin declines sharply or enters a prolonged consolidation, meme coins, especially new ones without established communities, could see dramatic corrections.

At the same time, the rise of Solana-based meme coins adds a new dimension to the market, but it is a story that will need continued advertising and market conditions to remain compelling.

Therefore, it will be crucial to stay alert to Bitcoin’s movements and be prepared for sudden market changes. It is critical to be careful for those considering Meme coin investments. Only invest money you can afford to lose.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.