Unlike the celebratory atmosphere of Trump's camp, investors betting on Trump-related MEME coins may find it hard to smile, as the anticipated surge did not materialize with Trump's successful election; instead, these MEMEs collectively fizzled out, with most experiencing significant declines.
Written by: Frank, PANews
On November 6, the grand spectacle of the U.S. presidential election finally came to a close, with Donald Trump winning the election and set to become the 47th president of the United States. As expectations around the U.S. election shifted, the crypto world also placed its bets in different ways. Besides Polymarket, MEME coins became another hot battleground.
However, unlike the celebratory atmosphere of Trump's camp, investors betting on Trump-related MEME coins may find it hard to smile, as the anticipated surge did not materialize with Trump's successful election; instead, these MEMEs collectively fizzled out, with most experiencing significant declines. The tokens related to another candidate, Harris, saw even more drastic drops, with many plummeting by over 90%, and some nearly reaching zero.
New MEMEs gained more popularity but experienced wild fluctuations
According to Coindesk, on November 5, over 1,000 MEME coins related to the U.S. presidential election were issued on Solana within a 24-hour period.
PANews also observed while monitoring MEME coins on Solana that in the most recent 24 hours (November 6), 9 out of the top 20 coins by trading volume on the Solana chain were related to the U.S. election. The MEME coin coded as EAGLE reached a trading volume of $42.4 million, becoming the most traded election-related token. In contrast, the previously hottest Trump token TRUMP (MAGA) had a trading volume of only $23.7 million.
From the trading volume data, it appears that most of the popular tokens on election day on the Solana chain were newly created MEMEs from recent days, while some larger market cap tokens that had been around longer did not perform well on election day. This is clearly not good news for those who had already bet on certain MEME coins, hoping to achieve significant profits through Trump's victory.
In addition to the trading volume heat, most Trump-related tokens did not achieve the soaring market performance that the public expected. Most newly created tokens performed strongly before noon on November 6, but as the election results became more certain, these tokens began to plummet sharply, with many popular coins dropping by over 90%. For example, the token named magacycle was created on the morning of November 6 and was in a rapid upward trend until around 10:30 AM, but from that point, its price began to fall rapidly, dropping 91% from its peak by 4 PM on November 6. Other newly created tokens like $EAGLE and $BSDNT also fell by over 90%.
Established MEMEs did not see the expected rise
Meanwhile, the longer-established Trump-related MEMEs did not experience the anticipated rise. $tremp2 rose about 30% in two days, while $DMAGA (Dark MAGA) experienced a rollercoaster, rising about 110% in the morning but then dropping around 70% by 5 PM on November 6, bringing its price back to pre-increase levels. The MAGA token followed a similar pattern, rising 44% before falling back to its original position. From a long-term perspective, MAGA is still down 82% from its historical high of $17, needing to rise over five times to return to its previous peak. None of this occurred when Trump won the election.
Compared to Trump-related investors, those betting on Harris may be in a worse situation. After all, Trump-related tokens still have the potential to rebound with changing circumstances. However, Harris-related tokens have clearly been abandoned by the market. The KAMA (on the Solana chain) token maintained a market cap of over $20 million around 2 PM, but by around 5 PM, its market cap had plummeted to just $1 million, evaporating 95% of its value. Other originally higher market cap Harris tokens like $HARRIS, whether on the Solana or Ethereum chains, have also experienced significant price drops, with current token values only in the hundreds of thousands.
Good news turns into bad news?
As for why this phenomenon occurred, there is currently no data to explain the reasons. However, PANews can analyze the collective plunge of U.S. election-related MEME coins from the following perspectives.
Good news turning into bad news. This seems to be a law in the financial investment field that is difficult to decipher; historically, every major market expectation of good news has often led to significant declines upon realization. For instance, the market for Bitcoin ETFs also experienced a substantial correction right after their launch.
Large funds tend to be more cautious in times of high market uncertainty. During PANews' Twitter Space event on the evening of November 4, titled "Election Day Approaches, What Will Happen Next in the Crypto World?", many institutional representatives indicated that the current market uncertainty is high, and large funds often choose to wait and see, deploying capital based on the market environment after everything settles. Clearly, on election day, the MEME market was dominated more by retail behavior driven by emotions.
The biggest beneficiaries of the U.S. election may be mainstream crypto assets like Bitcoin. On November 6, mainstream crypto assets like Bitcoin saw significant increases, with Bitcoin's price breaking historical highs and reaching $75,000. This indicates that a large amount of capital seems to have flowed into mainstream crypto assets.
The excessive generation of new MEMEs diluted market attention. On the day before the election, over 1,000 related MEMEs were issued on Solana, and the number of new MEMEs issued on election day was also considerable. The large number of new tokens inevitably spread the election-related funds across various projects, preventing any single project from capturing all the attention.
Severe homogenization and lack of genuine narrative ability. Looking at the MEMEs related to the U.S. election, most were randomly issued tokens through Pump.fun, with few having substantial connections to the election. Thus, the themed MEMEs related to the U.S. election ultimately resembled a short-term PVP scenario akin to gambling.
In summary, with the conclusion of the U.S. election, the heat of related themed MEMEs seems to be coming to an end. For MEME investors who experienced significant ups and downs, Trump's ascension did not bring the expected benefits. In the future, as Trump officially takes office, it remains to be seen whether his previous declarations will materialize, and the entire crypto community may also experience similar disparities.
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