Trump is elected president, but MAGA coins suffer a setback. Has the meme coin reached its end, and will DeFi become a new starting point for the crypto market?

On November 5, 2024, Trump successfully won the election, becoming the first leader in American history known as the 'Bitcoin President.' Following this announcement, the price of Bitcoin quickly surged, breaking through a six-month trading range, peaking at $76,000. However, contrary to market expectations, the Trump series of meme coins did not rise due to this historic news; instead, they saw a significant drop.

For example, address 0x2f6...1Be78 invested $250,000 when Trump was leading, buying 70,000 TRUMP tokens at an average price of $3.55, but is currently facing a loss of 35.5%. This decline raises questions: why did the Trump meme coins plummet despite the favorable news of the 'Bitcoin President' being elected?

The core reason may lie in the market expectation of 'good news being fully priced in.' The Trump meme coins were already at a relatively low level before the election, and the news of Trump's victory did not provide sufficient momentum for a new rise. Additionally, from Trump's disclosed crypto account, the assets in that account have shrunk by millions of dollars due to the decline in meme coin prices since May of this year.

In contrast, other emerging political meme coins (such as Pnut and D.O.G.E) have risen against the trend. Unlike the direct political narratives of Trump and MAGA, the story behind Pnut is more complex and resonates. Pnut's origin is related to a squirrel named Peanut, which became famous due to the care of Mark Longo, but was later euthanized by the New York state government without proper justification, sparking public outcry. This incident has even been used to criticize the Democratic Party, making Pnut's story more attractive and profound.

From a broader market perspective, after Trump's election, the DeFi sector has instead welcomed a rise. DeFi tokens with protocol revenue have gradually shed concerns of being classified as 'securities.' Rune Christensen, the founder of MakerDAO, stated on social media that Trump's victory will drive the continued revival of DeFi, and the number of users may increase tenfold. Tokens like Uniswap, Ethena, Jito, and Lido DAO saw increases of up to 46%, 72%, 63%, and 56%, respectively.

The sentiment on CEX platforms has also become more optimistic, with altcoins that have long been seen as 'going to zero' rebounding on this day. Many believe that as regulations gradually loosen, opportunities for legitimate profits in the market will increase, potentially reducing speculative hot money on-chain.

This market trend indicates that simple political meme narratives can no longer attract funds. Investors need deeper stories that can resonate to support consensus. DeFi, with its decentralization and practicality, is becoming a new focal point in the crypto market. The 'money-picking era' of meme coins may have passed, and new growth will require more complex and compelling narratives as a driving force.