Solana will ride memecoin election hype to $400, says analyst
Two president-themed memecoins will help drive Solana to $400 by the US election in November.
That’s according to Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital.
Solana-based altcoins Jeo Boden and Donald Tremp — based on the jumbled names of the last two US presidents — helped Solana leapfrog Ethereum in trading volume on Thursday.
“Memecoins will run deep into the bull market,” McMillin told DL News, meaning the two altcoins will be actively traded over the next few months.
The two memecoins rallied as former US President Donald Trump embraced crypto in his strongest terms yet, and current President Joe Biden threatened to veto a pro-crypto bill last week — cementing crypto as an election issue.
Solana surging on the back of the news also helps traders regain confidence in the blockchain, which has been plagued by outages for years, and served as a live stress test, McMillin said.
“While memes might be a laugh and short-term speculative tool,” they’re paving the way for other more sustainable use cases, such as tokenisation of real-world assets, he added.
Solana trades at about $136. Even though that’s still some ways off from its November 2021 all-time high of $260, the increased trading served as a live stress test of the Solana network, McMillin said.
He also said that the price of Solana will be bolstered by more liquidity hitting the market as the US Treasury moves to strengthen the economy, meaning investors will have more money to trade with high-risk assets like cryptocurrencies.
The Donald Tremp memecoin rose 204% to $0.76 on Thursday, and Jeo Boden surged 33% to $0.4.
They then fell back to $0.53 and $0.26, respectively.
Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at [email protected].
