Politically themed tokens surged 780% this year, outperforming meme coins

These are the findings of a new research report on “PolitiFi Coins” by CoinGecko published on August 27th.

The report noted that PolitiFi tokens outperformed meme coins, rising 782.4% between January 1 and August 25, 2024, while memes rose about 90% during same period

The company described PolitiFi tokens as a subset of the broader category of meme coins, “taking inspiration from political figures and events.”

However, he added that most of them are satirical and not officially linked to any politician.

Political action during the election year

The research also reported that the PolitiFi sector had a 1.5% market share of the meme coin category on August 25, 2024.

He listed PolitiFi’s top three coins, noting that ConstitutionDAO (PEOPLE) was the largest, with a market cap of $385.6 million, up 494.3% since January 2024.

ConstitutionDAO was initially created in November 2021 to raise funds to purchase an original copy of the United States Constitution. However, it eventually disbanded.

Donald Trump’s MAGA (TRUMP) was the second largest with a market cap of $178.9 million, up 1,350.9% since January 2024.

This coin comes up every time the presidential candidate makes the news, most recently in an assassination attempt when TRUMP surged 66%.

In addition, the project uses its proceeds to contribute directly to Donald Trump’s Ethereum wallet and aligned charities, the report added.

CoinGecko concluded that “the price action of PolitiFi tokens is closely tied to political events, where developments can significantly affect their value.” He provided some more examples of bombs and dumps for tokens, such as BODEN and KAMA.

How did PolitiFi coins perform against meme coins? 🔍

Our study shows that the PolitiFI coin category increased by 782.4% from January 1 to August 25, 2024, outperforming the broader meme coin category, which increased by 90.2% in the same period.

Read the full study:… pic.twitter.com/xg9vxIJmT7

— CoinGecko (@coingecko) August 27, 2024

PolitiFi files are likely to remain in the spotlight until the U.S. presidential election in November, which will make or break some of them.

Meme Coin Ecosystem Outlook

Memecoins in general are very volatile and mostly used for speculation, with very little real-world purpose for most projects.

The meme coin’s total market capitalization is currently $41 billion, after a 7% dump over the past 24 hours. It represents around 1.9% of the total crypto market capitalization.

Many have been hit hard by the current market rout, with Dogecoin (DOGE) and Shiba Inu (SHIB) losing around 6.6% each.

Others such as Pepe (PEPE), Dogwifhat (WIF) and Book of Meme (BOME) have dropped double digits over the past day.

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