PolitiFi coins, a subset of meme tokens inspired by political figures and events, have outperformed their broader meme coin counterparts by a great margin.
According to recent data from CoinGecko, PolitiFi coins surged 782.4% between January 1 and August 25, 2024. However, the general meme coin category posted a comparatively modest 90.2% gain.
PolitiFi coins remain a niche market
Despite their impressive performance, PolitiFi coins remain a niche market. As of August 25, the sector commanded a market cap of $680.8 million. This represents just 1.5% of the $45.6 billion meme coin category. However, this marks a notable growth from its January starting point.
Leading the pack is ConstitutionDAO (PEOPLE), with a market cap of $385.6 million, up 494.3% since the start of the year. Interestingly, this project, originally created to purchase a copy of the U.S. Constitution, has maintained its dominance despite being defunct.
Following closely is MAGA (TRUMP), boasting a 1,350.9% gain and a $178.9 million market cap, and MAGA Hat (MAGA), which has grown 1,292.1% since its May 2024 inception.
The volatility of PolitiFi coins is closely tied to real-world political events. For instance, Donald Trump’s public presence in January saw MAGA (TRUMP) skyrocket 442.8% in just over a week.
Controversially, Trump’s guilty verdict case coincided with MAGA (TRUMP) reaching an all-time high of $798 million. Other events, like Biden’s health concerns and a Trump assassination attempt, have triggered major price swings across various PolitiFi tokens.
While most PolitiFi coins are unaffiliated with actual politicians, some, like MAGA (TRUMP), claim to contribute transaction fees to political causes.
As the 2024 U.S. presidential race heats up, PolitiFi coins are likely to remain highly volatile. However, investors should approach with caution—while the gains have been impressive, the speculative nature of these tokens makes them a high-risk investment.
Also Read: Trump Promises to Make US the ‘Crypto Capital of the Planet’
Source: https://www.cryptonewsz.com/politifi-coins-surge-in-2024-beating-memecoins/