These are the findings of a new research report on “PolitiFi coins” from CoinGecko published on Aug. 27.
The report noted that PolitiFi tokens outperformed meme coins, rising 782.4% between January 1 and August 25, 2024, while memes rose around 90% during the same period.
The firm described PolitiFi tokens as a subset of the broader meme coin category, “drawing inspiration from political figures and events.”
However, it added that the majority of them are satirical and not officially linked to any politicians.
PolitiFi Action in Election Year
The research also reported that the PolitiFi sector had a 1.5% market share of the meme coin category as of August 25, 2024.
It listed the top three PolitiFi coins, noting that ConstitutionDAO (PEOPLE) was the largest, with a $385.6 million market cap, which has been up 494.3% since January 2024.
ConstitutionDAO was initially created in November 2021 to raise funds to purchase an original copy of the United States Constitution. However, it was eventually disbanded.
The Donald Trump-themed MAGA (TRUMP) was the second largest with a $178.9 million market cap, up 1,350.9% since January 2024.
This coin pumps whenever the presidential candidate makes the news, most recently in an assassination attempt when TRUMP surged 66%.
Additionally, the project uses its revenue to directly contribute to Donald Trump’s Ethereum wallet and aligned charities, the report added.
CoinGecko concluded that “the price action of PolitiFi tokens is closely linked to political events, where developments can significantly impact their value.” It provided a few more examples of pumps and dumps for tokens, such as BODEN and KAMA.
How did PolitiFi coins perform against meme coins? 🔍
Our study shows that the PolitiFI coins category rose by 782.4% from January 1 to August 25, 2024, outperforming the broader meme coins category, which rose by 90.2% in the same period.
Read the full study:… pic.twitter.com/xg9vxIJmT7
— CoinGecko (@coingecko) August 27, 2024
PolitiFi tokens are likely to remain in the limelight up until the United States presidential election in November, which will make or break some of them.
Meme Coin Ecosystem Outlook
Meme coins, in general, are highly volatile and are primarily used for speculation, with very little real-world purpose for most projects.
The total meme coin market capitalization is currently $41 billion, following a 7% dump over the past 24 hours. It represents around 1.9% of the total crypto market cap.
Many have been hit hard in today’s market rout, with Dogecoin (DOGE) and Shiba Inu (SHIB) losing around 6.6% apiece.
Others such as Pepe (PEPE), Dogwifhat (WIF), and Book of Meme (BOME) have dumped double digits over the past day.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
Credit: Source link
