2024 has been an incredible year in the world of cryptocurrencies, still developing at a record pace; political tokens, also called “PolitiFi” tokens are gradually dominating the crypto market, which cannot even be compared with the most popular memecoins.
Nevertheless, PolitiFi tokens differ from memecoins that have become favorites of the year, mainly due to the increased political divide and the approach of the U.S. presidential elections.
PolitiFi Tokens: What Can We Expect?
PolitiFi tokens are cryptos named after political personalities, policies, or incidents. These tokens have grown popular this year because they exploit the political sentiments around the U. S presidential campaign season.
For instance, there’s the TRUMP token, which is tied to the 45th president of the United States, and the BODEN token, named after Joe Biden, the 46th president.
The popularity of these tokens demonstrates the mixture of political processes and financial products where tokenization acts as an investment and a political declaration.
The surge in PolitiFi tokens can be attributed to several factors: The rise in PolitiFi tokens can be attributed to several factors:
Political Volatility: This is because, with the U. S. election fast approaching, the political instability has seen some people engage in these tokens through trading or wagering on outcomes while using the tokens to exhibit their political ideas.
Cultural Relevance: These tokens have taken up standard themes in modern culture; they have become part of the political dialogue, workaday, especially in social networks where political discussions are most heated.
Outperforming Memecoins
Due to relatability and sponsorship, such memecoins as DOGE and SHIB have invariably set the pace, but PolitiFi tokens surpassed them in 2024.
This outperformance is unexpected, especially when memecoins have been the best-performing crypto narrative in the recent past, with returns exceeding 1300% in the first quarter of 2024 only.
However, due to the speculative and politically related aspects involved with PolitiFi tokens, their prices have become even steeper, with some tokens experiencing extraordinary growth during significant political events.
For instance, during the first debate between Trump and Biden, there was increased traffic, activity, and interest as measured by the rise in the value of the TRUMP token.
This expansion in the PolitiFi tokens has also been matched with the contraction in NFT sales, thus pointing to investors’ growing interest in the politically influenced assets.
Market Implications of PolitiFi Tokens
The emergence of the PolitiFi tokens demonstrates that the cryptocurrency market is not static, as new narratives can be introduced swiftly that could dominate the established ones.
Despite the popularity of memecoins, PolitiFi tokens give rise to the notion that politically-dedicated cryptocurrencies can become a significant category in the crypto market during political instability.
However, the tokens included in such investments are very risky and have severe price fluctuations associated with odd political occurrences. As the real-world 2024 U. S. presidential campaign nears, the outcomes of these tokens will likely continue to correlate strongly with political events, which is why such tokens are both highly risky and highly rewarding.
PolitiFi tokens in 2024 showed that politics became increasingly involved in influencing the cryptocurrency market.
Although these tokens come with risks, as traders and investors search for ways to benefit from political events or other phenomena, these tokens could present opportunities.