Political Finance (PolitiFi) tokens, constituting meme coins inspired by political figures, are bleeding after a commendable performance in H1 2024.
After reaching a combined market capitalization of $1.25 billion in early June, the valuation has plummeted nearly 90%, now standing at $154.9 million.
Top PolitiFi Meme Coins Lose Almost 90% Value in Three Months
PolitiFi meme coins emerged in mid-2023, with TRUMP debuting in August and setting the stage for other similar tokens. The sector saw a strong rally during the Bitcoin bull run, fueled by excitement around spot Bitcoin ETFs.
As the broader crypto markets benefited from the excitement surrounding ETFs, PolitiFi meme coins also surged. However, with just 50 days left until the US elections on November 5, fortunes have shifted.
Read More: How Can Blockchain Be Used for Voting in 2024?
The five most popular PolitiFi meme coins — MAGA (TRUMP), MAGA Hat (MAGA), Doland Tremp (TREMP), Jeo Boden (BODEN), and Kamala Horris (KAMA) — are now trading almost 90% below their peak total market capitalization.
This decline persists despite the intensity of the US election campaigns, with both the Republican and Democratic parties embracing crypto. Kamala Harris, the de facto Democratic ticket nominee, is reportedly showing increased support for pro-crypto policies. Meanwhile, Republican candidate Donald Trump has made bullish promises for Bitcoin and the crypto assets.
These positions have made both parties more favorable to the industry. However, this optimism hasn’t been mirrored in the performance of PolitiFi meme coins.
One possible reason for the drop in PolitiFi meme coin prices is the lack of new holders entering the market. For prices to rise, fresh capital would need to flow in, with liquidity strong enough to offset the ongoing selling pressure.
Bitcoin’s bull run between October 2023 and March 2024 helped PolitiFi meme coins thrive, and the anticipated “Uptober” rally could offer a similar boost to the sector ahead of the US elections.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Traders and investors should prepare for increased volatility as the election nears. More specifically, with Donald Trump set to reveal the launch date of his new DeFi project, World Liberty Financial (WLFI), on September 16, meme coins tied to Trump — such as TRUMP, MAGA, TREMP, and BODEN — could see some price movement around that date.
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