In recent months, the world of cryptocurrency has seen an unexpected player emerge: political meme coins.
What Happened: The most prominent among them, including MAGA TRUMP/USD, MAGA Hat MAGA/USD, Doland Tremp TREMP/USD, Jeo Boden BODEN/USD, and Kamala Horris KAMA/USD, saw their combined market capitalization soar to an impressive $1.25 billion in early June.
However, the bubble seems to have burst, with their total value plummeting to under $170 million – a staggering 90% decline, Blockworks reported.
Interestingly, a significant portion of this market is now dominated by the remnants of ConstitutionDAO, a decentralized autonomous organization that famously lost a bid for a rare first-print U.S. Constitution to Citadel CEO Ken Griffin in 2021.
The rise of PolitiFi coincided with a broader upswing in the cryptocurrency market.
The performance of these political meme coins has largely mirrored that of Ethereum, while Bitcoin has shown more resilience.
MAGA Memecoin in particular has seen dramatic fluctuations.
Launched in August 2023, it initially rode the wave of major political events.
“Thousands of addresses added MAGA to their bags around the Supreme Court’s election ballot ruling, Trump’s ‘hush money’ guilty verdict and his assassination attempt in July,” according to a blockchain data expert.
However, recent events have failed to spark similar enthusiasm.
The token’s value has plummeted from its all-time high of $17.51 in early June to a mere $2.25, leaving many investors in the red.
“Out of the 80,190 addresses holding MAGA, about 30% of them (24,300) bought in after the token set an all-time high,” a crypto market researcher said.
Why It Matters: The future of PolitiFi remains uncertain.
While some believe this is merely a temporary setback, others see it as a sign of waning interest.
“A simple reason this particular flavor of meme coin is down could be that there’s no new fresh wave of interested holders entering their markets,” suggested a cryptocurrency analyst.
The KAMA memecoin experienced a 1,500% increase in July 2024 after President Joe Biden announced his withdrawal from the presidential race, highlighting how political shifts can dramatically affect market performance.
Steven Steele, chief marketing officer of MAGA Memecoin, previously noted the potential for “four more years of catalysts” if Trump were to win the presidency again. This sentiment underscores the speculative nature of these tokens, heavily influenced by political developments.
What’s Next: For those interested in delving deeper into the intersection of politics, technology, and finance, Benzinga’s Future of Digital Assets event on Nov. 19 promises to offer valuable insights.
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