Trump-Themed Meme Coins See Market Cap Drop by Millions Following U.S. Election
Following Trump’s victory in the U.S. election, Donald Trump-themed meme coins TRUMP, MAGA, TREMP, and STRUMP have plummeted, with their combined market valuation down more than 21% on the day. In terms of market capitalization, MAGA, the biggest Trump-themed meme coin, dropped 7.25% on the last day, trading at $2.35 at the time of writing. The market value of MAGA Hat, a meme token based on Trump’s famous red hat from his election campaigns, dropped to $24 million after collapsing by 22.54%.
On November 5, Dark MAGA witnessed the biggest gains, going from $0.008 to $0.0018 overnight. Since then, the meme coin has dropped 62% from its pre-election peak and was selling at $0.0045, depleting its market capitalization by more than $13.5 million. Similarly, Super Trump saw a steep decline of 54.9%, losing $11 million in market value.
Meme Coin Sell-Offs: Trump-Themed Tokens Follow Dogecoin’s Sell the News Pattern
As with Dogecoin, the first and biggest meme coin in the industry, traders appeared to have sold the news, which is a common pattern for meme coins, which frequently undergo steep sell-offs following enthusiasm peaks. A classic example of traders selling the news was Dogecoin’s explosive increase before Elon Musk’s May 2021 appearance on Saturday Night Live. As Musk, a fervent backer of Dogecoin, hinted about his appearance on SNL, DOGE surged to an all-time high of $0.73 ahead of the May 8 airing date.
However, the excitement swiftly died down during and after the broadcast, as traders scrambled to sell their positions as the price of DOGE fell more than 30% in a matter of hours. The cryptocurrency is still far below its peak at present values. PolitiFi tokens, sometimes known as event coins, appear to follow this pattern as well, fluctuating in parallel with political events. However, the decline occurs in spite of Trump’s win, which may indicate that interest in this meme coin subset is dwindling.
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