‘PolitiFi’ tokens record strong rise and outperform memecoins

A report published by CoinGecko on August 27 provides an overview of “PolitiFi” tokens, or tokens and memecoins linked to politicians. According to the report, the value of these tokens soared 782.4% between January 1 and August 25, 2024.

In the same period, memecoins appreciated by about 90% during the same period. In other words, tokens linked to names like Kamala Harris and Donald Trump had the highest average returns of the year.

The company described PolitiFi tokens as a subset of the broader meme coin category, “taking inspiration from political figures and events.” The tokens emerged in late Q2 but have benefited from the momentum surrounding the U.S. election.

PolitiFi Tokens Stand Out in Election Year

The research also reported that the PolitiFi sector already accounted for 1.5% of the memecoin category as of August 25, 2024. Among the sector’s tokens, the largest is ConstitutionDAO (PEOPLE), inspired by the U.S. Constitution. The token’s market cap was $385.6 million, up 494.3% since January 2024.

ConstitutionDAO was initially created in November 2021 to raise funds to purchase an original copy of the U.S. Constitution. However, it was eventually dissolved.

Next came MAGA (TRUMP), a memecoin inspired by Republican presidential candidate Donald Trump, with a market value of $178.9 million. Its rise has been even more significant, growing 1,350.9% since January 2024.

The memecoin has been seen to surge in value whenever Trump has been in the news. On July 13, when Trump was assassinated during a campaign event, the memecoin surged 66% after he escaped with his life. Additionally, the project uses its revenue to contribute directly to Donald Trump’s Ethereum wallet and aligned charities.

CoinGecko concluded that “the price action of PolitiFi tokens is closely tied to political events, where developments can significantly impact their value.”

PolitiFi tokens are likely to remain in the spotlight until the U.S. presidential election in November. But the CoinGecko document says many of them are likely to plummet in value after the Nov. 5 vote.

PolitiFi vs Memecoins

Memecoins in general are highly volatile and are primarily used for speculation, with very little real-world purpose for most projects. Political tokens are even more speculative, resembling a betting scheme on who will win the election.

The total market cap of memecoins is currently $41 billion, down 7% in the last 24 hours. Memecoins account for 1.9% of the total cryptocurrency market cap.

Many were hit hard in today’s market rout, with Dogecoin (DOGE) and Shiba Inu (SHIB) losing around 6.6% each. Others like Pepe (PEPE), Dogwifhat (WIF) and Book of Meme (BOME) are down double digits in the past 24 hours.

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