
Dogecoin , Shiba Inu and many other memecoins rallied as the entire crypto market flashed green on Nov. 11 amid an expanding market cap and trading volume.
DOGE has more than doubled over the past seven days and is up 43% over the last 24 hours. Its rival, SHIB, is up 14% on the day and has gained more than 65% over the previous week. Ethereum-based Pepe and Solana-based Dogwifhat have rallied 16% and 6% over the last 24 hours, respectively.
Performance of top-cap memecoins. Source: CoinMarketCap
Let’s look at the factors driving memecoins up today.
Enthusiasm over a crypto-friendly Trump administration fuels memecoins
Memecoins are not rallying in isolation. Their rise is part of a broader market rally that has seen the total market capitalization of the sector return above $3 trillion on Nov. 12. The last week has seen more than one all-time high for Bitcoin , which is charging toward the much-coveted $100,000 level after moving close to $90,000 during early Asian trading hours on Nov. 12. The pioneer cryptocurrency is up 33% since Nov. 5 when Americans voted in an election that saw Donald Trump emerge as the winner of the presidential race.
The crypto community is optimistic that the Trump administration will put in place crypto-friendly policies that would make it easy for businesses in the sector to flourish. In a video shared in an Aug. 29 post on X, Trump said:
“This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet. They want to choke you. They want to choke you out of business. We’re not going to let that happen.”
As a result, cryptocurrencies embarked on a rally after Trump’s decisive victory, where he garnered 312 electoral college votes against Vice President Kamala Harris’ 226. With the Republicans now having control of both Houses, the excitement continues to grow over Trump’s ability to pass favorable crypto legislation quite easily.
2024 House and Senate US election results. Source: AP News
As a result, market participants are optimistic about the future of crypto with independent analyst More Crypto Online forecasting DOGE price above $1 before the end of the year.Â
Fellow analyst Mikybull Crypto believes “$2 to $4 price targets” are possible for DOGE this cycle.Â
These two predictions highlight the level of market optimism – which is driving Dogecoin and other memecoins higher.Â
Memecoin market cap explodes to $112 billion all-time high
Data from CoinMarketCap shows that the total market capitalization of memecoins has doubled in the last seven days, rising 103% from $55 billion on Nov. 5 to $112.3 billion on Nov. 12. This figure is 25% higher than the previous peak of $90 billion reached during the bull run.Â
The aggregate market value of cryptocurrencies in this sector is up more than 400% year-to-date.
Memecoin market capitalization and daily trading volume. Source: CoinMarketCap
The total daily trading volume across the memecoin sector has increased by more than 720% between Nov. 5 and Nov. 11.Â
This is corroborated by data from Dune which reveals that weekly memecoin transaction flows across all blockchains, including Ethereum and Solana, have collectively grown $360 million during the week ending Nov. 8, up 136% from $152 million the previous week.Â
The cumulative trading volume for all memecoins has crossed the $50 million mark to rest at $53 billion at the time of publication.
Memecoins total trading volumes. Source: Dune
Massive crypto liquidations accompany memecoin rally
Futures market data from CoinGlass show that the ongoing crypto market recovery has wiped out more than $692 million in leveraged positions within the past 24 hours, with over $50 million in DOGE shorts and more than $2.9 million SHIB longs accounting for the majority of liquidations across memecoins.
Similarly, more than $3.46 million in WIF longs and $2.28 million in PNUT longs were liquidated over the same period.
Total crypto liquidations. Source: CoinGlass
Crypto prices, including those of memecoins, are positively affected when short derivative positions are liquidated as increasing buying pressure and high demand-side trading volume overpowers short traders.