Why Are Meme Coins Defying Market Correction Ahead of US Elections

Meme coins surged above other assets after huge corrections in the last 24 hours. Unlike other coins with limited impacts for similar events, these assets are known for massive sentiment swings. Major reasons for sustaining most tokens are improved community participation, cycle gains from most traders, and the general election sentiment.

Meme Coin Market Cap Holds Above $60 Billion 

At press time, the meme coin market capitalization stands at $60.3 billion, holding on to that level amid a fall in other areas. Several meme categories, including political assets, are performing well, with users rallying around them. In the last 24 hours, crypto prices have taken 4.43%, while daily transaction volumes are at $76 billion.

To put this into perspective, Bitcoin recorded a 3% outflow on the last day, while Dogecoin was up 7.3%. Meme coins like Shiba Inu and PEPE are also on an upward trajectory in the same timeframe. Political coins have seen the most gains, with MAGA posting 21.8% inflows. Solana meme coins have also seen gains after analysts pointed to the meme coin frenzy in Q1 2024.

“The buzz around Solana meme tokens is undeniable, and $WIF is leading the charge. @dogwifcoin is the real deal in the Solana ecosystem. With a $2.2B market cap already, this isn’t just another meme coin; it’s a movement! Get in early because $WIF has already made significant strides, pushing through expectations. Where will $WIF peak this cycle?”  Crypto trader Luciano BTC wrote on X (formerly Twitter). 

Election Drive Spark Meme Coins

Several tokens have 100X in the last 24 hours, raising the value of the meme ecosystem. Leading the pack is BUU, recording a 601% surge today, followed by Wiz and Goatseus Poppimus, netting 342% and 154%, respectively. The crypto community maintained its rally for meme coins to keep tokens at a favorable position ahead of the next price swings. 

Meme bulls accumulated coins and made sizeable profits last month. Finally, the US elections frenzy was the major reason for a meme coin drive. As the market anticipates favorable crypto policies, inflows are a likely expectation drawn from previous cycles. Both Donald Trump and Kamala Harris have pledged to help innovate the sector. The present administration remained at loggerheads with the industry, coupled with multiple SEC lawsuits against firms.