MAGA Token Leads 55% Rally in Trump-Inspired Memecoins as Election Odds Shift

TLDR:

• Trump-inspired memecoins surged 40% amid rumors of RFK Jr.’s endorsement
• MAGA (TRUMP) token jumped 55.6% to $4.14 before settling at $3.7
• Trump recently endorsed a new crypto platform called “The DeFiant Ones”
• Trump’s odds of winning the election increased to 54% according to Polymarket
• Combined market cap of top 20 meme coins (excluding largest) is $8 billion

The cryptocurrency market witnessed a significant uptick in Trump-themed tokens as rumors swirled about potential changes in the U.S. presidential race.

Memecoins inspired by former President Donald Trump saw a surge of up to 40% in value, with the largest Trump-themed token, MAGA (TRUMP), experiencing a particularly notable increase.

The MAGA token, which had been trading below the $3 support zone following August market crashes, skyrocketed by 55.6% to reach $4.14 before settling at $3.7, marking a 40% increase in 24 hours.

This surge coincided with reports suggesting that Independent candidate Robert F. Kennedy Jr. might drop out of the presidential race and potentially endorse Trump.

According to Polymarket’s 2024 Presidential Election Forecast, Trump’s chances of winning the election rose to 51%, giving him a lead over his main rival. This shift in political odds appears to have fueled investor interest in Trump-related cryptocurrencies.

The surge in Trump-themed tokens also follows the former president’s recent endorsement of a soon-to-launch cryptocurrency platform called “The DeFiant Ones.”

DJT: For too long, the average American has been squeezed by the big banks and financial elites. It’s time we take a stand—together. #BeDefiant https://t.co/DuEtfRfrjt pic.twitter.com/txPz5FVSsK

— Donald Trump Jr. (@DonaldJTrumpJr) August 22, 2024

Trump, who was previously critical of cryptocurrencies, has shifted his stance in recent months, promising to make the United States a global crypto leader if re-elected.

In his endorsement of the new platform, Trump stated,

“For too long, the average American has been squeezed by the big banks and financial elites. It’s time we take a stand — together.” This pro-crypto stance marks a significant departure from his earlier skepticism towards digital currencies.

Other Trump-inspired tokens, such as Super Trump (STRUMP) and Trump Mania (TMANIA), also saw notable increases of 10% and 8% respectively. The broader category of political-themed tokens, known as PolitiFi, surged by 15.5% in the same period.

Despite this recent surge, the overall market cap of political-themed tokens has seen a significant decline. The combined market cap of these tokens currently stands at just over $591 million, down from previous highs.

Crypto analyst Murad Mahmudov predicts that “cult meme coins” will continue to outperform other crypto sectors until the end of the market cycle.

Mahmudov noted that the combined market capitalization of the top 20 meme coins, excluding some of the largest ones like Dogecoin (DOGE) and Shiba Inu (SHIB), is currently around $8 billion.

1/16 Why Cult Memecoins will continue to outperform everything until the end of the Cycle

Every Crypto “Altcoin” Cycle has a few core Narratives that dominate the cycle.

2016-2017: Ethereum, Altcoins and ICOs
2020-2021: Alt-L1s, DeFi, GameFi, NFTs
2024-2025: Memes, AI, RWA pic.twitter.com/6RKPFPM42O

— Murad (@MustStopMurad) August 22, 2024

The surge in Trump-themed tokens comes as Bitcoin, the largest cryptocurrency by market capitalization, holds steady above $60,000.

Historically, meme coins tend to perform well when Bitcoin is in an uptrend. Factors that could push Bitcoin higher include potential Federal Reserve rate cuts, a weaker US dollar, and the ongoing stock market rally.