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Donald Trump-themed meme coins TRUMP, MAGA, TREMP and STRUMP have crashed, with their total market capitalization falling more than 21% on the day, after Trump claimed a victory in the US election.
MAGA (TRUMP), the largest Trump-themed meme coin in terms of market capitalization, fell 50.7% in the last 24 hours, exchanging hands at $1.71 as of writing. The altcoin's market capitalization fell from $212 million seen on November 6 to $79 million at the time of writing.
MAGA Hat (MAGA), a meme token inspired by the iconic red hat Trump wore during his political campaigns, also plummeted 51% and its market capitalization fell to $39 million.
Dark MAGA (DMAGA), which posted the biggest gains on November 5, rising from $0.008 to $0.0018 overnight. The meme coin has since plummeted 62% from its pre-election level and was trading at $0.0045, wiping more than $13.5 million off its market capitalization. Similarly, Super Trump (STRUMP) also faced a sharp drop of 54.9%, and its market capitalization lost $11 million.
Other popular meme coins that previously capitalized on Trump's presidential victory but plummeted at the time of this publication include Doland Tremp (TREMP), TRUMPCOIN, TRUMP 47 (47), and Pepe Trump (PTRUMP), which suffered losses between 50 and 65%.
Traders appeared to have sold on the news, a familiar trend for meme coins, which often experience strong sales after hype spikes, as with Dogecoin (DOGE), the industry's first and largest meme coin.
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Dogecoin's meteoric rise leading to Elon Musk's appearance on Saturday Night Live in May 2021 became a classic case of traders selling the news. DOGE hit an all-time high of $0.73 ahead of the May 8 air date when Musk, an avid Dogecoin supporter, mocked his role on SNL.
However, enthusiasm quickly died down during and after the broadcast as traders rushed to dump their holdings and the price of DOGE fell by more than 30% in a matter of hours. At current prices, the token is still 74% below its all-time high.
This pattern also seems evident in PolitiFi tokens, which are often referred to as “event currencies” as they move in tandem with political events. However, the recession comes despite Trump's victory, which could mean that enthusiasm around this subset of meme coins is waning.
A likely scenario is that much of the liquidity from these PolitiFi tokens will flow into bitcoin (btc) and other altcoins, as the flagship cryptocurrency has been posting new highs over the past day, fueling hopes that the bull market is beginning.
Prominent altcoins like Ethena (ENA) and Raydium (RAY) have posted double-digit gains, while the overall meme coin market is up more than 13%, suggesting PolitiFi tokens face an isolated sell-off now that they have ended the elections.
