Crypto: Why Do Trump Memecoins Plunge Despite His Victory?

The cryptocurrencies inspired by Donald Trump suffered a spectacular rout following his victory in the American presidential election, even as Bitcoin set a new historical record.

An unexpected debacle in the euphoria of Trump’s victory

It was on the evening of November 6, 2024, a few hours after the announcement of Donald Trump’s victory with 295 electoral votes against 226 for Kamala Harris, that the Trump memecoins market began to collapse.

The MAGA token (TRUMP), the leader in this category, initially peaked at $4.60 in the euphoria of the results, before plummeting 53% to settle at $1.87.

This downward trend spared none of the tokens related to the former president. The MAGA Hat (MAGA) lost 55% of its value, while Dark MAGA (DMAGA) collapsed by 75%. Even peripheral tokens like Super Trump (STRUMP) and MAGA: Fight for Trump saw their value decrease by more than 50%.

Notably, Donald Trump himself is said to hold around 579,290 TRUMP tokens, now valued at only $1 million according to Arkham Intelligence data.

The rest of the crypto market in full euphoria

Paradoxically, this correction occurs in a particularly favorable context for the cryptocurrency market as a whole. Bitcoin has hit a new historical record by surpassing $76,000, while Ethereum jumped 12% to reach $2,800.

The traditional memecoins are also benefiting from this positive dynamic: Dogecoin is up 10% to $0.20, Shiba Inu is up 6%, and PEPE shows an impressive performance of +18% for the day.

This dichotomy between the collapse of Trump memecoins and the shining health of the rest of the crypto market underscores the highly speculative nature of these thematic tokens. Investors seem to prefer more established cryptos in a bullish market context.