Here’s why Trump crypto coins like DJT and MAGA are soaring

Donald Trump-themed cryptocurrencies are on the rise after a hugely successful rally at New York’s Madison Square Garden and as the countdown to the election date continues.

Department of Government Efficiency (DOGE) increased by 50%, pushing its market cap to over $53 million. This rally took place after Elon Musk attended the rally and talked about his vision for the US government.

MAGA (TRUMP), the largest Trump-themed cryptocurrency, rose 23% to its highest level since October 19. Similarly, MAGA Line is up almost 17%, while Doland Tremp (TREMP) and Trumpcoin (DJT) are up 18%. .

These tokens soared after Trump held a massive rally with thousands of attendees in New York, a historically blue state. According to media reports, the arena was packed and thousands of people were turned away.

🚨BREAKING NEWS: MORE THAN 94,500 PEOPLE AT RIGHT PRESIDENT TRUMP’S MADISON SQUARE GARDEN RALLY!

The arena reached a MAX CAPACITY of 19,500 and the NYPD reported 75,000 OUTSIDE!

This is THE BIGGEST RALLY I have ever attended!

No need for BUSES or TWERKING RAPPERS!
pic.twitter.com/vAWLZTmjbV

— Bo Loudon (@BoLoudon) 27 October 2024

Meanwhile, the odds in the prediction market have shifted significantly in Trump’s favor. A Polymarket poll with $2.6 billion in assets found Trump’s odds of winning at 66%, with Kamala Harris at 34%, the lowest on record.

Other prediction marketplaces like PredictIt and Kalshi have similar numbers; Trump has a 60% chance of winning.

Trump cryptocurrencies may reverse

However, analysts warn that these surveys should be approached with caution as they may affect the performance of several individuals. At Polymarket, for example, three leading pro-Trump predictions run by an individual in France are worth over $40 million.

Additionally, most traditional polls show the race to be close in swing states like Michigan, Pennsylvania, Arizona, Nevada and Georgia. Additionally, in many cases, as in 2016 and 2022, the polls were wrong.

In theory, most of Trump’s cryptocurrencies will do well if he wins the presidential race in next week’s general election, as they are mostly driven by hype. On the other hand, if he loses the election, the coins are likely to drop sharply because at this age he will likely lose his influence among most Republicans.

The other risk for these meme tokens is that they rally ahead of the election and pull back sharply once the election occurs. This is a phenomenon known as buying the rumor and selling the news.

Trump meme coins have performed well at a time when demand for meme coins has increased. Data shows that the market cap of all meme coins is over $62 billion and the 24-hour volume is $8 billion.