Cryptocurrencies linked to former US President Donald Trump have seen a meteoric rise over the past week, reflecting growing speculative fervor around politically charged “memecoins” in the digital asset space.
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The most notable gainer was the “Super Trump” token (STRUMP), which rose more than 200% on May 29 alone, making it one of the most popular cryptocurrencies on CoinMarketCap.
memecoin, which debuted on Ethereum in March, has seen its fortunes change dramatically since its launch on the Solana blockchain last weekend.
Tyler, a cryptocurrency analyst, who has been closely monitoring the situation noted:
“It's not even been 24 hours since #SUPERTRUMP launched on #SOLANA and we already have massive support of around 4 million MCs. Nearly 1 million volume and up 485.970%!
Political memes stay hot 🔥🔥
In the past day:$Trump +20% to $680 million$MAGA +20% to $220 million$boden +25% to $230 million$stock (Super Trump) +186% to $31 million
TRUMP on ETH is clearly leading the way and is now the 8th largest meme by mc.
Polifi has become too big to fade away pic.twitter.com/J6onV5W9Vg
— Tyler D 🧙♂️ (@Tyler_Did_It) May 29, 2024
Trump Memecoin and the “PoliFi” phenomenon.
The STRUMP rise appears to be part of a broader trend within the so-called “Polifi” (political finance), where tokens associated with prominent political figures and ideologies have gained significant traction among cryptocurrency investors.
Other Trump-related memes, such as TRUMP, MAGA, and BODEN, have also recorded massive price spikes in recent days, with gains ranging from 20% to 350%. This rise has pushed the original Trump coin to become the eighth largest meme coin by market cap.
The STRUMP project itself has emphasized its community's deep devotion to the former president, claiming that 0.8% of its portfolio is dedicated to Trump. This signal of support appears to have resonated with the crypto public, many of whom see Trump's pro-crypto stance as a positive driver for these types of digital assets.
Strompe loses his power
However, the euphoria surrounding STRUMP and its peers was short-lived, as the meme has since lost ground following its recent record highs. As of press time, STRUMP was trading around $0.006, roughly 50% below its high of $0.012 reached earlier this week.
This volatility underscores the inherent risks and speculative nature of the memecoin market, where prices can fluctuate dramatically based on social media trends, influencer endorsements, and other ephemeral factors.
The long-term viability of these tokens remains uncertain, as regulatory scrutiny and broader market conditions could significantly impact their performance.
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Investors bring ideologies to blockchain
The resurgence of Trump-related memes reflects the ongoing fascination with the former president's brand and the growing influence of politically motivated investors in the cryptocurrency space.
While these digital assets have attracted the attention of speculators, their dramatic price fluctuations have served as a cautionary tale for those seeking to profit from the “PoliFi” phenomenon.
Featured image from iPic.Ai, chart from TradingView