30 May 2024
Cryptocurrencies linked to former US President Donald Trump have seen a meteoric rise over the past week, reflecting a growing speculative fervor around politically-charged “memecoins” in the digital asset space.
The most notable gainer has been the “Super Trump” (STRUMP) token, which rallied by over 200% on May 29th alone, making it one of the top trending cryptocurrencies on CoinMarketCap.
The memecoin, which first debuted on Ethereum in March, has seen its fortunes change dramatically since launching on the Solana blockchain just last weekend.
Crypto analyst Tyler, who has been closely watching the space, noted:
“We are not even 24 hours past the #SUPERTRUMP launch on #SOLANA and already have great support around 4 million MC. Almost 1 million in volume and up 485.970%!”
Political meme coins stay hot
In the past day:$TRUMP +20% to $680M$MAGA +20% to $220M$BODEN +25% to $230M$STRUMP (Super Trump) +186% to $31M
The TRUMP coin on ETH is clearly leading the way and is now the 8th biggest meme coin by mc.
Polifi has become too big to fade pic.twitter.com/J6onV5W9Vg
— TylerD (@Tyler_Did_It) May 29, 2024
Trump Memecoin And The ‘PoliFi’ Phenomenon
The STRUMP surge appears to be part of a broader trend within the so-called “PoliFi” (political finance) ecosystem, where tokens tied to prominent political figures and ideologies have gained significant traction among crypto investors.
Other Trump-linked memecoins, such as TRUMP, MAGA, and BODEN, have also recorded massive price spikes in recent days, with gains ranging from 20% to 350%. This rally has catapulted the original TRUMP coin to become the 8th largest memecoin by market capitalization.
The STRUMP project itself has emphasized its community’s deep dedication to the former president, claiming that 0.8% of its wallet is reserved for Trump. This signal of support seems to have resonated with the crypto crowd, many of whom view Trump’s pro-crypto stance as a positive driver for these types of digital assets.
STRUMP Loses Steam
However, the euphoria surrounding STRUMP and its peers has been short-lived, as the memecoins have since lost steam following their recent record highs. As of press time, STRUMP was trading around $0.006, roughly 50% below its peak price of $0.012 reached earlier this week.
This volatility underscores the inherent risks and speculative nature of the memecoin market, where prices can fluctuate wildly 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.
Investors Bring Ideologies To The Blockchain
The resurgence of Trump-linked memecoins reflects the continued fascination with the former president’s brand and the growing influence of politically-motivated investors in the cryptocurrency space.
While these digital assets have captivated the attention of speculators, their dramatic price swings serve as a cautionary tale for those seeking to capitalize on the “PoliFi” phenomenon.
Featured image from iPic.Ai, chart from TradingView