The political-themed meme coins known as “PolitiFi tokens” have surged 782.4% on average in 2024, as reported by CoinGecko. The category surpassed the broader meme coin category’s 90.2% average year-to-date growth.
The largest PolitiFi token is ConstitutionDAO (PEOPLE), leading with a $385.6 million market cap and showing a 494.3% price increase since the start of the year.
Yet, despite having less than half PEOPLE’s market cap at $178.9 million, MAGA (TRUMP) soared 1,350.9% in 2024
Another Trump-related token with a significant performance is the MAGA Hat (MAGA), which has grown 1,292.1% since its inception in May. At a market cap of $35.5 million, this is the third largest PolitiFi token.
Notably, the PolitiFi category’s growth is linked to increased interest in US politics within crypto communities. Tokens often react to political events, such as Trump’s Iowa caucus victory and legal issues, as well as Biden’s health concerns and campaign developments.
Moreover, key political events influencing PolitiFi token prices in 2024 included Trump’s Iowa caucus win, his hush money payment verdict, Biden’s health issues, and campaign developments. These events caused significant price fluctuations across various politically-themed tokens.
Despite outperforming meme coins, PolitiFi tokens represent only 1.5% of the meme coin market, with a $680.8 million market cap compared to the broader category’s $45.6 billion.
Some PolitiFi tokens apply transaction fees to support aligned political causes. For example, MAGA (TRUMP) contributes to Donald Trump’s Ethereum wallet and related charities.
Crypto and the US elections
Crypto became a fundamental part of the US presidential elections after former president Donald Trump started showing support for the industry.
Since May, Trump vowed to end the hostility towards the blockchain industry if elected, and that he’s “very positive” and “open-minded” towards the companies of this sector.
During his participation in this year’s Bitcoin Conference in Nashville, the presidential candidate even stated that he would fire Gary Gensler and that Bitcoin would become a strategic reserve asset if elected.
This prompted vice-president and Democrats representative Kamala Harris to engage with crypto, setting an effort called “Crypto for Harris” to ease concerns of the community over a potential crackdown against the industry.
Notably, this effort organized virtual meetings with the participation of figures such as Mark Cuban and Anthony Scaramucci. Additionally, it got support from Democrats’ top voices, who vowed to take a measured approach to regulate crypto while fostering growth.
