PolitiFi Tokens Surge 782.4% in 2024, Surpassing Meme Coins

As
the
2024
US
election
nears,
the
intersection
of
cryptocurrencies
and
politics
has
been
heating
up,
giving
rise
to ‘PolitiFi
coins,’
according
to

CoinGecko.

Have
PolitiFi
Coins
Outperformed
Meme
Coins?

The
PolitiFi
(Political
Finance)
coins
category
has
outperformed
meme
coins,
rising
782.4%
between
January
1
and
August
25,
2024.
Meanwhile,
the
broader
meme
coin
category
rose
90.2%
during
the
same
period.

While
the
PolitiFi
category
has
outperformed
meme
coins,
it
is
still
dwarfed
by
the
latter.
As
of
August
25,
the
PolitiFi
sector
had
a
1.5%
market
share
of
the
meme
coin
category,
with
a
$680.8
million
market
cap
versus
$45.6
billion.
At
its
peak
on
June
16,
PolitiFi
encompassed
3.3%
of
the
meme
coin
sector,
with
a
market
cap
of
$1.6
billion.

What
Are
The
Largest
PolitiFi
Coins?

As
of
August
25,
the
largest
PolitiFi
coin
was
ConstitutionDAO
(PEOPLE)
with
a
market
cap
of
$385.6
million.
Since
the
start
of
the
year,
it
has
risen
494.3%,
from
$64.9
million
to
$385.6
million.
ConstitutionDAO
was
initially
created
in
November
2021
to
raise
funds
to
purchase
an
original
copy
of
the
United
States
Constitution.
However,
it
lost
to
a
bid
of
$43.2
million
and
was
eventually
disbanded,
with
refunds
being
issued
to
contributors.
Despite
being
defunct,
it
has
managed
to
maintain
its
lead
over
the
PolitiFi
scene.

MAGA
(TRUMP)
is
the
second
largest
PolitiFi
coin,
with
a
market
cap
of
$178.9
million,
a
gain
of
1,350.9%
from
the
start
of
2024.
On
January
1,
its
market
cap
stood
at
$12.3
million.
However,
this
is
a
far
cry
from
its
all-time
high
of
$789.8
million
on
June
1.
Interestingly,
this
coincided
with
Donald
Trump
being
found
guilty
of
34
counts
of
hush
money
payments.
With
the
verdict
out,
MAGA
rose
by
22.3%
to
reach
its
all-time
high.

MAGA
Hat
(MAGA)
is
the
third
largest
PolitiFi
coin,
with
a
market
value
of
$35.5
million.
Since
its
inception
in
May
2024,
it
has
grown
1,292.1%,
rising
from
$2.6
million.
It
hit
an
all-time
high
of
$232.4
million
on
May
29,
having
a
similar
price
action
to
TRUMP.

What
Caused
PolitiFi
Coins
To
Rise?

Growing
interest
in
the
US
political
scene
amongst
crypto
communities
has
led
to
the
creation
of
many
PolitiFi
tokens.
While
the
majority
are
created
for
satire
purposes,
some
have
applied
transaction
fees
to
support
the
project
and
political
causes
it
aligns
with.
One
example
would
be
MAGA,
which
uses
its
revenue
to
directly
contribute
to
Donald
Trump’s
Ethereum
wallet
and
aligned
charities.

The
price
action
of
PolitiFi
tokens
is
closely
linked
to
political
events,
where
developments
can
significantly
impact
their
value.
Some
events
that
have
affected
the
PolitiFi
category
throughout
2024
include:

• 
  January
  15
  –
  Donald
  Trump
  wins
  a
  landslide
  victory
  at
  the
  2024
  Iowa
  Republican
  presidential
  caucuses.
  MAGA
  (Trump)
  rose
  79.1%
  within
  a
  day
  from
  $17.6
  million
  to
  $31.5
  million.
  It
  climbed
  to
  a
  local
  high
  of
  $95.3
  million
  by
  January
  23,
  a
  gain
  of
  442.8%.
• 
  May
  30
  –
  Trump
  found
  guilty
  of
  34
  counts
  of
  hush
  money
  payments.
  MAGA
  (TRUMP)
  increased
  22.3%
  despite
  the
  guilty
  verdict,
  reaching
  an
  all-time
  high
  of
  $798
  million.
  Meanwhile,
  Jeo
  Boden
  fell
  -11.4%.
• 
  June
  –
  Joe
  Biden’s
  health
  and
  age
  are
  questioned,
  as
  he
  started
  to
  stumble
  during
  press
  conferences.
  Jeo
  Boden
  (BODEN)
  dropped
  -42.8%
  between
  June
  1
  and
  June
  27
  (Presidential
  debate.)
• 
  July
  21
  –
  Biden
  announced
  he
  was
  dropping
  out
  of
  the
  Presidential
  race.
  BODEN
  fell
  -57.4%,
  while
  Kamala
  Horris
  (KAMA)
  gained
  59.6%.

What
is
PolitiFi?

PolitiFi
coins
are
a
subset
of
the
broader
meme
coin
category,
drawing
inspiration
from
political
figures
and
events.
The
majority
of
PolitiFi
coins
are
satirical
and
haven’t
been
officially
linked
to
any
politicians.
Similar
to
meme
coins,
the
value
of
PolitiFi
coins
are
purely
speculative,
with
interest
driven
by
communities
and
current
events.

Methodology

The
study
examined
the
market
cap
of
PolitiFi
(Political
Finance)
coins
versus
the
broader
Meme
category.
Using
CoinGecko
data
from
November
1,
2023,
to
August
25,
2024,
the
market
share
of
PolitiFi
was
then
derived.

Image
source:
Shutterstock