Following the election of Donald Trump as the 47th President of the United States, a number of Trump campaign-themed memecoins have witnessed notable gains.
According to Coingecko data, the Department of Government Efficiency and Peanut the Squirrel memecoins saw 24-hour price increases of 41% and 75%, respectively.
The Peanut the Squirrel token is inspired by a viral incident involving the euthanization of a pet squirrel by the New York Department of Environmental Protection, which became a point of interest for Republican supporters. This interesting background helped make the token an unlikely market leader following Trump’s victory.
On the other hand, the Department of Government Efficiency token has gained traction due to speculation surrounding Elon Musk’s potential role in a new Trump administration initiative focused on reducing government inefficiency. Musk recently expressed his willingness to contribute to such a cause in an interview with Tucker Carlson, saying, “I would be happy to help increase much-needed government efficiency. We have a huge government bureaucracy and over-regulation.”
Despite the success of some Trump-themed tokens, others have not been as successful. The MAGA token, which is associated with Trump’s long-standing political brand, saw a 27% drop in the same 24-hour period. Additionally, tokens like Super Trump and MAGA Hat experienced significant losses, with Super Trump down 50% and Doland Tremp, a token on the Solana blockchain, down 36%.
James Butterfill, Head of Research at CoinShares, noted that the overall cryptocurrency market could benefit from Trump’s influence on regulatory practices. Trump has been an outspoken critic of the U.S. Securities and Exchange Commission (SEC) and its current chairman, Gary Gensler. This could signal a shift toward a more crypto-friendly regulatory environment.
“Trump is expected to implement tighter fiscal policies to address the growing U.S. debt problem, which could lead to looser monetary policy as a trade-off that benefits digital assets,” Butterfill said in an email.
Butterfill also noted that a positive regulatory environment could reduce the stigma around cryptocurrency ownership and pave the way for more widespread adoption. Despite a record $29 billion inflow this year, adoption rates cited by 13F filings remain relatively low. Butterfill predicted that the ongoing record inflows into Bitcoin will likely continue into next year.
*This is not investment advice.