Analysts predict that Donald Trump will have a more significant impact on the crypto market than Kamala Harris, though the influence on the meme coin sector is still hotly debated.
Omid Malekan, a professor at Columbia Business School, believes that Trump’s win in the election could negatively affect the meme coin sector. Malekan pointed out that the rise in investor interest in meme coins is due to the disappointment in the tokenomics of venture-backed projects. A Republican win could result in rule changes that would allow token holders to benefit from dividends and fees, potentially reducing the interest in meme coins.
Meme coins have emerged as a response to the strict policies of the U.S. Securities and Exchange Commission (SEC), so any relaxation of these policies in the event of a Republican victory with Trump as president could lead to a downturn, as stated by Nic Carter, co-founder and general partner of Castle Island Ventures.
Carter supported Malekan’s claim, stating that if the SEC’s position changes, the demand for meme coins will decrease, although it is unlikely to disappear completely due to existing speculative interests.
The crypto community has shown mixed reactions to these statements. Some, like blogger and influencer Murad, believe that the growth of meme coins is driven by economic rather than political factors, and the election results are unlikely to significantly affect this sector. Another popular blogger, Jordan Fish, disagrees with Malekan and Carter, emphasizing that the interest of ordinary traders in meme coins remains high since they cannot participate in large projects in the early stages.
The meme coin sector has become the fastest-growing sector in the crypto industry, with a growth of over 1800% since the beginning of 2024. Meme coins associated with Donald Trump have seen a sharp increase in volume and price ahead of the U.S. election. Although they make up only 2.4% of the entire market, they have attracted significant attention from the crypto community.
Forrest Przybysz, a trader and CEO of Sistine Research, noted that meme coins’ popularity is based on attention cycles, and the more attention they receive, the higher their value will be. Yan Liberman, co-founder at crypto research firm Delphi Digital, emphasized that meme coins act as collectibles, allowing for the monetization of public attention.
While a Trump victory could lead to a new boom in the cryptocurrency segment, the future of meme coins remains uncertain, as they are unlikely to have any practical utility or strategic importance for the development of the decentralized finance market. As the U.S. presidential elections approach, the crypto market is expected to face volatility, but the nature of this volatility remains unclear.