Trump election-themed memecoins Peanut the Squirrel and Department of Government Efficiency see major gains

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The Block2024/11/06 18:11

By:Brian McGleenon

Election-themed memecoins such as Peanut the Squirrel and Department of Government Efficiency have seen substantial gains in the past 24 hours following Donald Trump’s U.S. election victory.In contrast, PolitiFi memecoins like Super Trump, MAGA, and Doland Tremp have experienced notable declines during the same period.

Election-themed memecoins like Peanut the Squirrel and Department of Government Efficiency have posted significant 24-hour gains following Donald Trump's U.S. election victory , while major PolitiFi tokens such as MAGA and MAGA Hat have experienced double-digit declines.

The Department of Government Efficiency and Peanut the Squirrel memecoins have risen by 23% and 45% respectively, according to Coingecko data.

Memecoins inspired by Trump-campaign themes rally

The Peanut the Squirrel memecoin is inspired by the controversial euthanasia of a pet squirrel seized by New York's Department of Environmental Conservation, an event that became a rallying cry for Republicans.

Similarly, the Department of Government Efficiency memecoin is based on Elon Musk’s potential involvement in a possible new initiative under the Trump administration, with Musk expressing support for improving government efficiency.

"I'd be happy to help improve the government efficiency, obviously Department of Government Efficiency which is sorely needed, we've got a gigantic government bureaucracy and overregulation," Musk stated in a recent interview with Tucker Carlson.

However, not all Trump-themed tokens have fared well. MAGA, a token inspired by the president's political brand, has seen its value drop by over 27% in the past 24 hours. Other tokens such as Super Trump and MAGA Hat have also faced significant losses, with Super Trump falling 50% in the same timeframe. Additionally, Doland Tremp, a Trump-inspired token on the Solana blockchain, has dropped by 36%.

The broader memecoin market is mostly rallying, with tokens outside the PolitiFi category gaining significant value over the past 24 hours. Notably, the Base Meme Coingecko category's market cap has risen over 21% in the last 24 hours to $1.45 billion, with memecoins native to the Base network like Brett and Toshi seeing gains of 16% and 21%, respectively. Meanwhile, decentralized finance (DeFi) protocols within the same ecosystem, such as Alien Base have also reported strong growth, up 25% in the same period.

Shift in regulatory sentiment toward crypto

CoinShares Head of Research James Butterfill said the cryptocurrency industry could benefit from Trump’s potential influence on the SEC, as Trump has openly criticized both the agency and its chairman, Gary Gensler, signaling a possible shift toward a more crypto-friendly regulatory stance.

"Trump is also expected to implement tighter fiscal policies to address the growing U.S. debt problem, and this fiscal restraint could lead to looser monetary policy as a counterbalance, which would be favorable for digital assets," Butterfill said in an email sent to The Block.

Butterfill also noted that an improving regulatory environment could help reduce the stigma around cryptocurrency ownership, fostering broader adoption.

“Currently, 13F filings indicate that adoption remains relatively low despite a record $29 billion in inflows this year. We’re likely to see continued record inflows into bitcoin both this year and next,” he added.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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