PolitiFi Tokens Surge 782.4% in 2024, Surpassing Meme Coins
Rebeca Moen Aug 27, 2024 10:27
PolitiFi tokens have surged 782.4% in 2024, significantly outperforming meme coins. Learn about the top performers and key events driving this trend.
As the 2024 US election nears, the intersection of cryptocurrencies and politics has been heating up, giving rise to 'PolitiFi coins,' according to CoinGecko.
Have PolitiFi Coins Outperformed Meme Coins?
The PolitiFi (Political Finance) coins category has outperformed meme coins, rising 782.4% between January 1 and August 25, 2024. Meanwhile, the broader meme coin category rose 90.2% during the same period.
While the PolitiFi category has outperformed meme coins, it is still dwarfed by the latter. As of August 25, the PolitiFi sector had a 1.5% market share of the meme coin category, with a $680.8 million market cap versus $45.6 billion. At its peak on June 16, PolitiFi encompassed 3.3% of the meme coin sector, with a market cap of $1.6 billion.
What Are The Largest PolitiFi Coins?
As of August 25, the largest PolitiFi coin was ConstitutionDAO (PEOPLE) with a market cap of $385.6 million. Since the start of the year, it has risen 494.3%, from $64.9 million to $385.6 million. ConstitutionDAO was initially created in November 2021 to raise funds to purchase an original copy of the United States Constitution. However, it lost to a bid of $43.2 million and was eventually disbanded, with refunds being issued to contributors. Despite being defunct, it has managed to maintain its lead over the PolitiFi scene.
MAGA (TRUMP) is the second largest PolitiFi coin, with a market cap of $178.9 million, a gain of 1,350.9% from the start of 2024. On January 1, its market cap stood at $12.3 million. However, this is a far cry from its all-time high of $789.8 million on June 1. Interestingly, this coincided with Donald Trump being found guilty of 34 counts of hush money payments. With the verdict out, MAGA rose by 22.3% to reach its all-time high.
MAGA Hat (MAGA) is the third largest PolitiFi coin, with a market value of $35.5 million. Since its inception in May 2024, it has grown 1,292.1%, rising from $2.6 million. It hit an all-time high of $232.4 million on May 29, having a similar price action to TRUMP.
What Caused PolitiFi Coins To Rise?
Growing interest in the US political scene amongst crypto communities has led to the creation of many PolitiFi tokens. While the majority are created for satire purposes, some have applied transaction fees to support the project and political causes it aligns with. One example would be MAGA, which uses its revenue to directly contribute to Donald Trump’s Ethereum wallet and aligned charities.
The price action of PolitiFi tokens is closely linked to political events, where developments can significantly impact their value. Some events that have affected the PolitiFi category throughout 2024 include:
- January 15 - Donald Trump wins a landslide victory at the 2024 Iowa Republican presidential caucuses. MAGA (Trump) rose 79.1% within a day from $17.6 million to $31.5 million. It climbed to a local high of $95.3 million by January 23, a gain of 442.8%.
- May 30 - Trump found guilty of 34 counts of hush money payments. MAGA (TRUMP) increased 22.3% despite the guilty verdict, reaching an all-time high of $798 million. Meanwhile, Jeo Boden fell -11.4%.
- June - Joe Biden’s health and age are questioned, as he started to stumble during press conferences. Jeo Boden (BODEN) dropped -42.8% between June 1 and June 27 (Presidential debate.)
- July 21 - Biden announced he was dropping out of the Presidential race. BODEN fell -57.4%, while Kamala Horris (KAMA) gained 59.6%.
What is PolitiFi?
PolitiFi coins are a subset of the broader meme coin category, drawing inspiration from political figures and events. The majority of PolitiFi coins are satirical and haven’t been officially linked to any politicians. Similar to meme coins, the value of PolitiFi coins are purely speculative, with interest driven by communities and current events.
Methodology
The study examined the market cap of PolitiFi (Political Finance) coins versus the broader Meme category. Using CoinGecko data from November 1, 2023, to August 25, 2024, the market share of PolitiFi was then derived.
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