Here’s why Trump crypto coins like DJT and MAGA are soaring

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As a seasoned researcher with years of experience observing financial markets, I must admit that the recent surge in Trump-themed crypto coins has piqued my interest. Having closely followed political campaigns and their impact on financial markets, I can’t help but draw parallels between the electoral landscape and the crypto world.

Coins based on the theme of Donald Trump saw a surge following his highly successful event at New York’s Madison Square Garden, with the election day drawing near.

The Department of Government Efficiency (DOGE) jumped by 50%, pushing its market cap to over $53 million. This rally happened after Elon Musk appeared in the rally and talked about his vision for the US government. 

In a significant surge, the largest coin themed around Donald Trump’s slogan, MAGA, experienced a 23% increase, reaching its peak since October 19. Likewise, the price of MAGA Hats climbed nearly 17%, and both Doland Trump (TREMP) and Trumpcoin (DJT) saw an uptick of 18%.

In New York, a traditionally Democratic state, these tokens experienced an increase following Trump’s large-scale rally, which attracted thousands of participants. As per news outlets, the venue was filled beyond capacity, leaving thousands more eager supporters outside.

🚨LATEST NEWS: MORE THAN 94,500 PEOPLE ARE ATTENDING PRESIDENT TRUMP‘S MADISON SQUARE GARDEN RALLY!

The venue has hit its MAXIMUM CAPACITY of 19,500 and the NYPD has reported around 75,000 PEOPLE OUTSIDE!

This is the LARGEST RALLY I’ve ever witnessed!

There are no BUSES or TWERKING ARTISTS here!

— Bo Loudon (@BoLoudon) October 27, 2024

Currently, the chances of Donald Trump winning are significantly higher according to a recent prediction market poll. This Polymarket survey, which manages $2.6 billion in assets, shows that Trump has a 66% chance of victory, while Kamala Harris stands at 34%. This is Harris’ lowest probability on record.

As a crypto investor, I’ve been keeping an eye on other platforms like PredictIt and Kalshi, and it seems that they’re predicting a high probability for Trump to win, estimating his chances at around 60%.

Trump crypto coins could reverse

While these polls might offer insights, it’s important to note that they should be viewed with some skepticism as a small number of individuals can significantly impact their results. For instance, on Polymarket, the top three pro-Trump predictions, controlled by an individual in France, hold stakes exceeding $40 million.

In these key battleground states – Michigan, Pennsylvania, Arizona, Nevada, and Georgia – most surveys indicate a tight race. It’s worth noting that history shows us that polls can sometimes be incorrect, as we saw in the elections of 2016 and 2022.

In essence, Trump-related cryptocurrencies are expected to perform well should Trump win next week’s presidential election, as they primarily thrive on hype. Conversely, if he were to lose the election, these tokens might experience a significant decline due to the likelihood of his waning influence among most Republicans at his current age.

Another potential risk for these meme tokens is a scenario where they surge in value before an election, only to plummet significantly afterwards. This phenomenon is often referred to as “purchasing speculation, and offloading reality.

Trump-themed cryptocurrencies are thriving as interest in meme coins increases. The data reveals that the total market capitalization for all meme coins exceeds $62 billion, while their 24-hour trading volume surpasses $8 billion.

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2024-10-28 16:02