Written by: Coingecko
Compiled by: Vernacular Blockchain
According to a recent report from Coingecko, PolitiFi coin outperformed MemeCoin in the cryptocurrency market, achieving a higher percentage return.
These coins, inspired by relevant figures or political themes, have seen considerable success amid the tense US election campaign.
In light of the November presidential election, speculators in the crypto space are making ambiguous guesses about who will be the next U.S. president.
Let's take a look at all the details below. Summary:
Coingecko: PolitiFi coin outperforms MemeCoin
What are the dominant PolitiFi cryptocurrencies?
Considering the future scenario of the US presidential election: reduce the issuance of political MemeCoin.
1. Coingecko: PolitiFi outperforms MemeCoin
So-called “PolitiFi coins” are taking the lead in the crypto MemeCoin market, according to a new report from Coingecko.
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 do not provide governance or on-chain utility to holders.
Their value is purely speculative and prices are often subject to attempts at market manipulation.
Despite its many flaws, the PolitiFi coin has significantly outperformed classic MemeCoin since the start of the year.
Specifically, from January 1 to August 25, 2024, this category grew by 782.4%, while MemeCoin grew by only 90.2% during the same period.
As of two days ago, PolitiFi tokens account 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, the crypto PolitiFi currency reached its peak, accounting for 3.3% of the market share, equivalent to a market value of $1.9 billion.
Since that day, activity in the cryptocurrency has more than halved, highlighting a decline in attention and speculation around these tokens.
2. What are the dominant PolitiFi cryptocurrencies?
Coingecko’s report helps identify the largest and most popular PolitiFi MemeCoin in 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 had 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. At the same time, the price of PEOPLE has soared from $0.012 to $0.13 (mid-June), and then fell back to the current $0.074.
Secondly, the second most popular PolitiFi cryptocurrency is MAGA (TRUMP), a MemeCoin inspired by billionaire entrepreneur Donald Trump. The cryptocurrency’s logo 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, with its price up 1,350.9% since the beginning of 2024.
Again, in this case, the cryptocurrency’s peak moment 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. Since January 1, TRUMP coin has risen 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, the coin has grown by 1,292.1%, with a market cap of $35.5 million from $2.6 million.
On May 29, it reached its all-time high with a market cap of $232.4 million, following a similar price trend 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 reduction of political MemeCoin
The most astute observers have surely noticed a common factor in the chart of crypto meme coin PolitiFi presented by Coingecko.
They both reached all-time highs around June and then experienced a three-month downward trend.
After a surge at the beginning of the year, enthusiasm for this speculative coin has waned. As we approach the end of the election campaign and the counting of votes in the November presidential election approaches, speculators are less interested in betting on the event.
This is because election outcome scenarios are becoming increasingly predictable, reducing the potential for speculation and eliminating possible trading opportunities.
Additionally, the value of some tokens such as BODEN, which plummeted when Biden abandoned his campaign, may have caused mixed emotions in the space.
The outlook for these crypto PolitiFi from now on is likely to be a continuation of the bear trend, with many of these MemeCoins eventually disappearing.
Their value is mainly linked to speculation related to the US election: the approach of the election itself becomes 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 off their last token inventory.
Please be cautious about large exposure to such crypto products as they involve very high risks and are susceptible to ongoing manipulation.
