In brief, Trump-themed meme coins, such as TRUMP, MAGA, TREMP, and STRUMP, saw severe sell-offs after the U.S. election, losing more than 21% of their total market value as traders pulled out of the hype.
Election Day Drop for Trump Tokens
After the election, tokens themed around Donald Trump, such as MAGA and STRUMP, suffered major losses. The largest among them, MAGA, plunged by over 50% within 24 hours, taking its market cap from $212 million to $79 million. The sudden decline illustrates a classic “sell the news” response seen often in speculative assets.
Patterns of Meme Coin Hype and Sell-Off
Around well-known events, meme coins frequently experience abrupt sell-offs and quick increases. This is similar to Dogecoin’s 2021 trend, when it surged before Elon Musk’s SNL appearance before plummeting when the excitement subsided. Similar patterns were seen with Trump-themed tokens, where enthusiasm subsided nearly instantly following the election’s outcome.
PolitiFi Tokens in Decline
PolitiFi tokens—meme coins linked to political figures—have shown a trend of rallying pre-event and crashing post-event. Despite Trump’s election victory, these tokens dropped, suggesting waning interest among traders as the initial hype subsided.
Money Moves Into Big Cryptocurrencies
The decline in Trump-related currencies coincides with a market upswing, and money is probably moving toward Bitcoin and other well-known altcoins. In anticipation of future market expansion in popular cryptocurrencies, many traders seem to be shifting their liquidity into more stable assets as Bitcoin continues to reach new highs.
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