The cryptocurrency market experienced a huge boost shortly after Donald Trump won the 2024 U.S. presidential election. The Bitcoin price climbed to $76,943, while the total market capitalization of the cryptocurrencies hit $2.51 trillion. While most cryptocurrencies surged, Trump-themed tokens tumbled, with memecoins like MAGA, TRUMP, DMAGA, and STRUMP losing over half their recent peaks.
Trump-Themed Tokens Spike
Trump-themed tokens rose when the election results were announced, as traders flocked to capitalize on Trump’s comeback. These tokens skyrocketed to all-time highs for many reasons, including speculation and hype. However, the rally was short-lived; as fast as the tokens rose, they started falling steeply.
The main reason for the decrease in Trump-themed tokens could be the return of capital to Bitcoin and Ethereum. As these top cryptocurrencies surged, investors began moving their money from riskier assets to safer ones.
Low Liquidity in Memecoins
The total volume of global crypto trading stood at $174 billion, and most of the transactions came from large-cap cryptocurrencies instead of memecoins. This relocation of resources made it difficult for Trump-themed tokens to have liquid markets and subject them to price swings.
Trump-themed tokens suffer from low liquidity, complicating swaps with other cryptocurrencies. Unlike Bitcoin, these tokens have not been backed by high trading volumes that could support price changes.
Trump and Kamala Memecoins Show Mixed Trends Amid Election
As of press time, the MAGA is trading at $2.00, showing an 11.81% decline over the past day. Nevertheless, MAGA is still trading below critical resistance levels, which means there is still downward pressure.
Meanwhile, DMAGA, at $0.005, has slightly recovered from its negative track, with an increase of 6% in a day. Despite a 24-hour surge of 21%, STRUMP, trading at $0.002938, marks a 56% weekly dip.
Although Trump’s victory boosted the crypto market, tokens tied to Trump have had a dire experience. These are highly speculative, illiquid, and often do not have sustained demand, making them prone to sharp falls.
