Trump-themed Meme Coins Rally Shrugging Off Bitcoin Fall, Here’s Why

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As a seasoned researcher with a keen interest in both finance and politics, I find the recent surge of PoliFi tokens based on former US President Donald Trump intriguing. My personal experience has taught me to never underestimate the power of market sentiment, especially when it comes to high-profile figures like Trump.

As a researcher, I’ve noticed an intriguing development in the crypto world lately: Tokens related to former U.S. President Donald Trump, such as PoliFi tokens, have been making headlines while displaying a contrast against Bitcoin. While Bitcoin, with its market cap of $1.21 trillion and current value of around $61,016, has seen minimal volatility of 0.1% in the past 24 hours, these Trump-themed tokens like MAGA (TRUMP) or MAGA have experienced a significant surge today, gaining between 13% to 22%. Despite Bitcoin’s dominance and today’s broader market correction, these coins have managed to buck the trend. With a 24h volatility of 19.3% for MAGA (TRUMP) and a current value of $0.0002, it’s interesting to observe their performance in this dynamic market.

In the latest updates, it appears that Donald Trump is currently surging ahead in the forecast for who will win the 2024 U.S. presidential election, according to prediction market data from Polymarket. As of this week, Trump’s chances of victory are estimated at approximately 56%, outpacing Vice President Kamala Harris.

 

On Thursday evening, the price of Bitcoin experienced intense selling due to unexpectedly high inflation figures from the US Consumer Price Index (CPI) for September. This unexpected increase in inflation has cast doubt on the possibility of further Federal Reserve interest rate reductions in November. If inflation remains above the Fed’s 2% target, Jerome Powell might postpone the next round of rate cuts.

In addition to Bitcoin, altcoins are also facing intense selling right now. But bucking this trend are meme coins related to Donald Trump, like MAGA and MAGA HAT, as well as TREMP on the Solana platform, which have both seen significant increases of more than 100% over the last week.

The MAGA price is up y 55% on the weekly chart while the MAGA HAT price is up by 102%. On the other hand, the Solana-based TREMP has surged by 93% over the past week.

PoliFi represents a collection of digital assets, including tokens and meme coins, which have garnered attention recently. They provide a platform for people and investors to engage in predictive trading related to the rise or fall of political figures by participating in market actions.

Donald Trump DeFi Project Makes Inroads

This week, Donald Trump’s Decentralized Finance (DeFi) project, World Liberty Financial, made significant strides by submitting a proposal to AaveDAO for collaboration on the Aave DeFi platform running on Ethereum. Essentially, World Liberty Financial is seeking to function as an extension of Aave, leveraging its infrastructure for governance and other essential functions. This partnership would empower World Liberty Financial to operate smoothly within the Ethereum DeFi ecosystem.

A different source indicates that World Liberty Financial might be intending to generate approximately $300 million by offering 20% of their total WLFI token supply. Consequently, this move would estimate the project’s fully-diluted market capitalization at around $1.5 billion.

The WLFI governance token confers voting privileges regarding the platform’s growth plans to its owners. However, these tokens will be locked and non-transferable for a period of 12 months, regardless if a community vote approves transfers during this timeframe. Notably, 63% of the total WLFI supply is earmarked for future public distribution, while 17% will be assigned as user incentives, and 20% is reserved for the development team.

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2024-10-11 14:00