TRUMP, MAGA, and other Trump-themed tokens crash after election day

Donald Trump-themed meme coins TRUMP, MAGA, TREMP and STRUMP tumbled, with total market capitalization down over 21% on the day following Trump’s victory in the US election.

MAGA (TRUMP), the largest Trump-themed meme coin by market cap, is down 50.7% in the last 24 hours, changing hands at $1.71 at the time of writing. The altcoin’s market cap has fallen from $212 million on November 6 to $79 million at the time of writing.

MAGA Hat (MAGA), a meme token inspired by the iconic red hat Trump wore during his political campaigns, also crashed by 51%, dropping its market cap to $39 million.

Dark MAGA (DMAGA), which saw the highest gain on November 5, rose from $ 0.008 to $ 0.0018 overnight. The meme coin has since fallen 62% from its pre-election level, trading at $0.0045 and losing over $13.5 million in market cap. Similarly, Super Trump (STRUMP) also faced a sharp decline of 54.9%, with its market cap falling by $11 million.

Other popular meme coins that previously benefited from Trump’s presidential victory but collapsed at the time of writing include Doland Tremp (TREMP), TRUMPCOIN, TRUMP 47 (47), and Pepe Trump (PTRUMP), which are down between 50-65%.

Merchants appeared to be sold on this news; This is a familiar trend for meme coins, which often experience sharp sell-offs after exaggerated peaks, as was the case with Dogecoin (DOGE), the industry’s first and largest meme coin.

Dogecoin’s meteoric rise leading up to Elon Musk’s Saturday Night Live appearance in May 2021 became a classic example of traders selling the news. DOGE rose to an all-time high of $0.73 ahead of the May 8 broadcast date, during which Musk, an avid supporter of Dogecoin, poked fun at his role on SNL.

However, during and after the broadcast, the excitement quickly faded as investors began unloading their holdings as the DOGE price fell over 30% in a matter of hours. At current prices, the token remains 74% below its all-time high.

This pattern is also evident in PolitiFi tokens, often referred to as “event coins,” as they move with political developments. But the decline comes despite Trump’s victory, which could mean that excitement around this subset of meme coins has waned.

A likely scenario is that a large portion of the liquidity from these PolitiFi tokens flows into Bitcoin (BTC) and other altcoins, as the flagship cryptocurrency recorded new highs in the past day, fueling hopes that the bull market will begin.

While leading altcoins such as Ethena (ENA) and Raydium (RAY) posted double-digit gains, the overall meme coin market was up over 13%; This suggests that PolitiFi tokens are facing an isolated sell-off after the elections are over.