November 7, 2024 – Despite Donald Trump’s election victory on Wednesday, Trump-themed memecoins, including TRUMP, MAGA, TREMP, and STRUMP, have seen sharp declines, with their total market capitalization falling by 21% in just 24 hours.
The collapse of these tokens marks a familiar trend for memecoins, which are known for extreme volatility, especially following peak moments driven by political events. MAGA, the largest of the Trump-themed tokens by market cap, has plunged by over 50%, dropping from $212 million to just $79 million. As of press time, MAGA was trading at $1.71, a significant loss from its pre-election levels.
MAGA HAT, another token inspired by Trump’s iconic red campaign hat, saw a similarly steep decline, shedding 51% of its value, with its market cap shrinking to $39 million. Dark MAGA, which had experienced a notable surge on November 5, fell 62%, erasing $13.5 million in market value, while Super Trump (STRUMP) dropped by nearly 55%, losing $11 million in just two days.
Other tokens in the Trump-themed meme ecosystem, including Doland Tremp, TRUMPCOIN, TRUMP 47, and Pepe Trump (PTRUMP), have also seen losses ranging from 50% to 65%, continuing the pattern of sharp sell-offs often seen with memecoins tied to political events.
Memecoins like these are part of the broader category known as PoliFi tokens, which derive their value from political developments. These tokens are notorious for their volatility, as they are closely linked to events and public sentiment surrounding political figures, making them highly susceptible to rapid price swings. Traders are being cautioned to only invest with funds they can afford to lose due to the inherent risks of such speculative assets.