PolitiFi tokens surpassed memecoins
In 2024, the sector of cryptocurrency themed around politics, dubbed “PolitiFi tokens,” witnessed an astonishing average growth of 782.4%, a figure reported by CoinGecko. This remarkable surge outpaced the general growth of meme-based cryptocurrencies, which recorded a 90.2% increase within the same timeframe.
ConstitutionDAO (PEOPLE), the heavyweight in the PolitiFi token arena, boasts a market capitalization of $385.6 million, coupled with a staggering 494.3% surge in its valuation since the year’s commencement.
In comparison, MAGA (TRUMP), though it commands a smaller market capitalization of $178.9 million—less than half of ConstitutionDAO’s valuation—witnessed an unparalleled ascent of 1,350.9% in 2024.
Adding to the list of impressive performers, another token inspired by Trump, MAGA Hat (MAGA), enjoyed a growth of 1,292.1% since it launched in May. With a market cap standing at $35.5 million, it ranks as the third top contender in the PolitiFi space.
A correlation is observed between the PolitiFi tokens’ surge and a burgeoning interest in American politics within the cryptocurrency community. These tokens are particularly responsive to U.S. political milestones, ranging from Trump’s Iowa caucus triumph to various legal and campaign related dynamics, including Biden's health episodes and electoral strategizing.
Notable political landmarks in 2024, such as Trump’s success in the Iowa caucus, the verdict on his hush money lawsuit, alongside Biden’s health episodes and election campaign maneuvers, have been pivotal in precipitating notable price volatilities across the spectrum of politically-themed cryptocurrencies.
Although they have eclipsed the performance of general meme cryptocurrencies, PolitiFi tokens account for just 1.5% of the total meme coin market, with their market capitalization standing at $680.8 million in contrast to the $45.6 billion of the wider meme coin category.
Certain PolitiFi tokens are recognized for their distinctive approach of levying transaction charges to fund political initiatives in alignment with their ethos. For instance, contributions from MAGA (TRUMP) are directed towards Donald Trump’s Ethereum wallet along with affiliated charitable endeavors.
The landscape of the U.S. presidential elections underwent a transformation when the ex-president Donald Trump disclosed his backing for the cryptocurrency sector.
From May onwards, Trump has committed to reversing the adverse attitudes towards blockchain technologies, affirming his “very positive” and “open-minded” stance regarding the sector’s enterprises.
At this year’s Bitcoin Conference held in Nashville, the presidential hopeful declared his intentions to dismiss Gary Gensler and to designate Bitcoin as a strategic reserve asset upon his election.
This statement catalyzed the vice president and Democratic party’s nominee, Kamala Harris, to actively engage with the cryptocurrency community, initiating “Crypto for Harris” to mitigate the industry’s fears of a potential stringent regulatory crackdown.
This initiative stood out by coordinating virtual meets featuring luminaries like Mark Cuban and Anthony Scaramucci and garnered backing from leading Democratic voices. These figures committed to a balanced regulatory approach that nurtures the cryptocurrency sector’s growth.
