PolitiFi tokens surged 780% and outperformed memecoins
A recent analysis by CoinGecko, unveiled on August 27, sheds light on the surging trend of "PolitiFi coins."
This analysis highlighted that between January 1 and August 25, 2024, PolitiFi tokens surged by an impressive 782.4%, dwarfing the gains of meme coins, which saw an increase of about 90% in the same timeframe.
The classification of PolitiFi tokens by the firm places them within the expansive meme coin sphere, with their themes heavily influenced by political personas and occurrences.
Despite their political undertones, the report clarifies that these tokens largely serve a satirical purpose without any formal affiliations to actual political figures.
The study noted the PolitiFi category commanded a 1.5% share of the meme coin sector as of August 25, 2024.
It spotlighted the top trio of PolitiFi tokens, with ConstitutionDAO (PEOPLE) leading the pack, boasting a market cap of $385.6 million, marking a 494.3% uptick since January 2024.
Launched in November 2021, ConstitutionDAO's objective was to amass funds for an original copy of the U.S. Constitution, leading to its eventual disbandment.
In second place, the Donald Trump-themed MAGA (TRUMP) token, saw its value skyrocket by 1,350.9% since January 2024, reaching a market cap of $178.9 million.
Notably, the MAGA coin experiences a spike in value with any significant news involving the political figure, including a 66% increase following an assassination attempt. The project also contributes financially to Donald Trump’s Ethereum wallet and affiliated charities, as noted in the report.
CoinGecko's comprehensive review posits that the valuation of PolitiFi tokens is intricately linked to political happenings, showcasing how various events can drastically influence their market worth. The analysis provides further instances of such fluctuations with tokens like BODEN and KAMA.
With the U.S. presidential election on the horizon in November, PolitiFi tokens are expected to stay in the spotlight, potentially determining their future trajectory.
The realm of meme coins is notably marked by its volatility, serving primarily as speculative ventures with limited real-world application for the majority of these projects.
As of now, the total market valuation for meme coins stands at $41 billion, after a recent 7% decline in the last 24 hours, accounting for approximately 1.9% of the entire cryptocurrency market capitalization.
The downturn impacted notable names like Dogecoin (DOGE) and Shiba Inu (SHIB), each dropping by about 6.6%, while others like Pepe (PEPE), Dogwifhat (WIF), and Book of Meme (BOME) experienced double-digit losses over the past day.
