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According to the latest report by Coingecko, the niche of PolitiFI coins is outperforming the market of crypto memecoins, with higher percentage returns.
These kinds of coins, which are inspired by relevant characters or political themes, are experiencing a fair amount of success in the wake of the tension in the USA election campaign.
In view of the presidential elections in November, the degen of the crypto sector are speculating somewhat ambiguously on who will be the next American president.
Let’s see all the details below
Summary
Coingecko: the politiFI coins outperform the memecoin
According to Coingecko’s latest report, the so-called “politiFI coins” are gaining a leading position within the crypto memecoin market.
These cryptocurrencies represent a subset of the broader meme coin sector, with inspirations from events and political figures.
Even though they have a similar background, they are in no way related to individual politicians and do not offer either governance or on-chain utility functions to their holders.
Their value is purely speculative, with prices often subject to attempts at market manipulation.
Despite the numerous flaws, however, the politiFi coins have significantly outperformed the classic memecoin from the beginning of the year to today.
Specifically, the category grew by 782.4% from January 1 to August 25, 2024, while the memecoins saw “only” an increase of 90.2% in the same period.
Until 2 days ago, PolitiFi coins constituted 1.5% of the market share of the meme industry, with a market capitalization of 680.8 billion dollars.
The broader meme sector boasts capital of 45.6 billion dollars, with DOGE, SHIB, and PEPE leading the segment.
On June 16, the crypto PolitiFI reached their peak with a market share of 3.3% equivalent to a value of 1.9 billion dollars in capitalization
From that day on, the cryptocurrency activity has been more than halved, highlighting a decrease in attention and speculation for this type of token
What are the dominant PolitiFI crypto?
The report by Coingecko helps identify the largest and most popular PolitiFi memecoins within the crypto sector.
As of August 25, the largest currency in this group is PEOPLE with a market capitalization of 385.6 million dollars.
The project was created in 2021 by ConstitutionDAO with the intent of raising funds to purchase an original copy of the United States Constitution.
The organization subsequently failed its mission with its offer rejected at the auction, but the currency continued to exist and achieve successes.
Since the beginning of the year, the PolitiFI token has seen its valuation increase by 494.3%, rising from 64.9 million to 385.6 million dollars.
At the same time, the price of PEOPLE from the threshold of 0.012 dollars exploded up to 0.13 dollars (mid-June) only to retrace to the current values at 0.074 dollars.
Following, the second most popular PolitiFi crypto is MAGA (TRUMP), a memecoin inspired by the multi-billionaire entrepreneur Donald Trump. The logo of the cryptocurrency fully depicts the face of the politician, while the project is dedicated to supporting his electoral campaign
As of August 25, TRUMP had a market capitalization of 178.9 million dollars, with its price having increased by 1350.9% since the beginning of 2024.
Also in this case, the moment of maximum splendor of the cryptocurrency was observed at the beginning of June, when the asset capitalized 789.8 million dollars.
In that instance, the political candidate was declared guilty of having falsified the accounting documents of his holding company with as many as 34 charges.
From January 1st, the TRUMP coin went from 0.23 dollars up to a maximum of 17 dollars, then dumping heavily to the current 3.6 dollars.
The third most relevant PolitiFI crypto is MAGA Hat (MAGA), also inspired by the presidential candidate Donald Trump. This currency has grown by 1292.1% since the beginning of the year, going from 2.6 million dollars in market capitalization to 35.5 million dollars.
On May 29, it reached an all-time high with a share of 232.4 million dollars and a price action similar to that of TRUMP.
Other PolitiFi memecoins worth mentioning are BODEN, which takes on the traits of Joe Biden, and KAMA, refined to the Democratic candidate Kamala Harris.
Future scenarios in view of the US presidential elections: reduction of political memecoins
The most attentive eyes will surely have noticed a common factor in the charts of the crypto memecoin PolitiFi presented by Coingecko.
All of them have indeed reached their all-time high more or less in the month of June, only to go through a 3-month downtrend phase.
After the boom of the first months of the year, the enthusiasm for this kind of speculative coins has waned.
As we get closer to the end of the election campaigns and the counting of the presidential elections in November, the degen lose the desire to bet on the event.
This is because the scenarios are likely becoming less and less unpredictable, reducing the potential for speculation and eliminating potential deals.
Furthermore, the zeroing of the value of some tokens like BODEN, whose price plummeted while Biden was abandoning his election campaign, might have triggered mixed sentiments in the sector.
All politifi coins went to 0 months before the election 💀
— Dave (@xsdavee) August 22, 2024
Most likely from here on, the scenario for these crypto PolitiFi is that of a continuation of the bearish trend, with many of these memecoins that will end up disappearing.
Their value is primarily tied to speculations related to the USA elections: the approach of the event itself acts in a certain sense as a “sell the news” for these resources that lose their reason for existing.
In fact, after the next American president is elected, the degn will no longer have a narrative to speculate on and therefore will sell the last stocks of tokens.
Be careful about exposing yourself massively to this kind of cryptographic products because they entail very high risks and are subject to continuous manipulations.