The Impact of the US Election on PolitiFi and MemeCoin

Written by: Coingecko

Compiled by: Vernacular Blockchain

According to the latest report from Coingecko, PolitiFi coins have outperformed MemeCoin in the cryptocurrency market and achieved higher percentage returns.

These coins inspired by relevant figures or political themes have achieved considerable success against the backdrop of tense US election campaigns.

In light of the presidential election in November, speculators in the crypto space are making ambiguous guesses about who will be the next US president.

Let's take a look at all the details below. Summary:

• Coingecko: PolitiFi Coins Outperform MemeCoin

• What are the leading PolitiFi cryptocurrencies?

• Considering the future scenario of the US presidential election: reduce the issuance of political MemeCoin.

1. Coingecko: PolitiFi Coins Outperform MemeCoin

According to the latest report from Coingecko, the so-called "PolitiFi Coins" are taking the lead in the crypto MemeCoin market.

These cryptocurrencies represent a subset of the broader category of meme coins, inspired by events and political figures.

Despite their similar backgrounds, these coins have no ties to any individual politician and provide no governance or on-chain utility to holders.

Their value is purely speculative, and prices are frequently subject to attempts at market manipulation.

Despite their many flaws, PolitiFi Coins have significantly outperformed classic MemeCoins year to date.

Specifically, from January 1, 2024 to August 25, this category grew 782.4%, while MemeCoin grew only 90.2% during the same period.

As of two days ago, PolitiFi Coins accounted for 1.5% of the MemeCoin market, with a market cap of $68.08 billion. The broader MemeCoin market has a total capitalization of $45.6 billion, with DOGE, SHIB, and PEPE dominating the sector.

On June 16, crypto PolitiFi currencies reached their peak, accounting for 3.3% of the market share, equivalent to a market value of $1.9 billion.

Since that day, the volume of activity in this type of cryptocurrency has more than halved, highlighting the decline in attention and speculation on this type of token.

2. What are the dominant PolitiFi cryptocurrencies?

Coingecko’s report helps identify the largest and most popular PolitiFi MemeCoins within the crypto space.

As of August 25, the largest coin in this group is PEOPLE, which has a market cap of $385.6 million. The project was created in 2021 by ConstitutionDAO to raise funds to purchase the original copy of the United States Constitution. However, the organization failed to achieve its mission after its bid was rejected in the auction, but the coin continues to exist and has achieved some success.

Since the beginning of the year, the valuation of this PolitiFiToken has increased by 494.3%, from $64.9 million to $385.6 million. Meanwhile, the price of PEOPLE has surged from the $0.012 level to $0.13 (mid-June), before falling back to the current $0.074.

Second, the second most popular PolitiFi cryptocurrency is MAGA (TRUMP), a MemeCoin inspired by billionaire entrepreneur Donald Trump. The cryptocurrency's logo fully features the politician's face, while the project is dedicated to supporting his campaign.

As of August 25, TRUMP's market cap is $178.9 million, and its price has increased by 1350.9% since the beginning of 2024.

Again, in this case, the peak moment of this cryptocurrency came in early June, when its market cap reached $789.8 million.

At that time, the political candidate was convicted of falsifying financial documents of his holding company and faced a total of 34 charges. Starting from January 1, TRUMP coin rose from $0.23 to a high of $17, and then fell sharply to the current $3.6.

The third most influential PolitiFi cryptocurrency is MAGAHat (MAGA), which is also inspired by presidential candidate Donald Trump. Since the beginning of the year, this currency has increased by 1292.1%, and its market value has increased from $2.6 million to $35.5 million.

On May 29, it reached an all-time high with a market cap of $232.4 million, with similar price action to TRUMP.

Other PolitiFi MemeCoins worth mentioning are BODEN, which features Joe Biden, and KAMA, which is refined to Democratic candidate Kamala Harris.

3. Prospects for the Future US Presidential Election: The Decline of Political MemeCoin

The most astute observers have certainly noticed a common factor in the charts of the crypto meme coin PolitiFi presented by Coingecko.

They all reached their all-time highs around June and then experienced a three-month downward trend.

After the craze at the beginning of this year, the enthusiasm for this speculative coin has faded. As we approach the end of the election campaign and the counting of votes in the November presidential election approaches, speculators' interest in betting on this event has weakened.

This is because the scenarios for the election results are becoming increasingly predictable, which reduces the potential for speculation and eliminates possible trading opportunities.

In addition, the value of some tokens such as BODEN has reached zero (its price plummeted when Biden abandoned his campaign), which may have triggered mixed emotions in the field.

From now on, the prospects for these crypto PolitiFi are likely to continue the bear market trend, and many of these MemeCoins will eventually disappear.

Their value is mainly tied to speculation related to the US election: the approach of the election itself has become a "sell news" for these resources in a sense, and they will lose their reason for existence after the election.

In fact, after the next US President is elected, speculators will no longer have a hype narrative and will therefore sell the last of their token inventory.

Please be cautious about large exposure to such crypto products, as they involve very high risks and are susceptible to ongoing manipulation.