Following Trump's victory in the U.S. election, Donald Trump-themed meme coins TRUMP, MAGA, TREMP, and STRUMP all experienced a crash, with a total market cap decline of over 21%.
MAGA, by market cap, is the largest Trump-themed meme coin, which has dropped by 50.7% in the past 24 hours, trading at $1.71 at the time of writing. The market cap of this altcoin fell from $212 million on November 6 to $79 million at the time of writing.
MAGA, a meme token inspired by the iconic red hat worn by Trump during his political campaign, also plummeted by 51%, with a market cap dropping to $39 million.
Dark Magic saw the largest gain on November 5, jumping overnight from $0.008 to $0.0018. Since then, the token has dropped 62% from pre-election levels, trading at $0.0045, with a market cap evaporating by over $13.5 million. Similarly, Super Trump (STRUMP) also plummeted by 54.9%, with a market cap shrinking by $11 million.
Other popular meme coins that previously profited from President Trump's victory have already crashed at the time of writing, with losses for Doland Tremp, TRUMPCOIN, TRUMP 47 (47), and Pepe Trump (PTRUMP) ranging between 50-65%.
Traders seem to have sold off these news, which is a familiar trend for meme coins that often undergo significant sell-offs after peaks in hype — just like Dogecoin, the first and largest meme coin in the industry.
In May 2021, the rapid rise of Dogecoin became a classic case of traders selling the news before Elon Musk appeared on Saturday Night Live. Before the broadcast on May 8, Dogecoin (DOGE) soared to an all-time high of $0.73, as Musk, a fervent supporter of Dogecoin, revealed his role on SNL.
However, during and after the live broadcast, the hype quickly dissipated, and traders rushed to sell their holdings, leading to a drop in DOGE's price of over 30% within hours. At the current price, the token is still 74% lower than its historical peak.
This pattern is also evident in PolitiFi tokens, which are often referred to as 'event coins' as they align with political developments. However, despite Trump's victory, the market still experienced a downturn, which may indicate that the hype surrounding this meme coin cluster is waning.
One possible scenario is that a significant amount of liquidity from these PolitiFi tokens is flowing into Bitcoin and other altcoins as the flagship cryptocurrency hit new highs in the past day, fueling hopes for the start of a bull market.
Notable altcoins like Ethena and Raydium have achieved double-digit gains, while the overall meme coin market has risen by over 13%, indicating that after the election, PolitiFi tokens are facing isolated sell-offs.
