With Donald Trump’s victory in the 2024 US elections, crypto enthusiasts’ daydreams have come true as the crypto market is on the rise. In the last 24 hours, the global market capitalization soared to $2.52 billion and the trading volume reached $174 billion, clearly indicating the growing interest among traders. More importantly, most cryptocurrencies made further gains, including Bitcoin, Ethereum, etc., but Trump memecoins fell sharply, making their holders worried about their future.
Analysis of the 50% drop in Trump Memecoins
With the victory of Donald Trump, the greatest impact was on the Bitcoin Pricewhich reached an all-time high of $76,460.15. More importantly, other popular altcoins reached new highs, but Trump memecoins fell sharply. However, this does not mean that these tokens missed the market rally. Interestingly, they were the first to jump, witnessing a strong surge.
There are four Trump Coins to BuyMAGA (MAGA), MAGA (Trump), Dark MAGA (DMAGA) and Super Trump (STRUMP), and these are also the most favored by investors. However, all of these stocks saw a significant rebound before falling 50% today. Here, the TRUMP token is currently trading at $2.22 despite its peak of $4.6 on November 6 after the US election results. Around the same time, MAGA recovered to $0.0002048 before falling to $0.00009533 today.
The biggest drop was in the price of the DMAGA token, as at one point it jumped to $0.02034, which was quite close to its all-time high of $0.0232. However, it has now fallen to $0.005401, disappointing its holders. Finally, the same goes for STRUMP, which is now worth $0.002345 despite yesterday’s high of $0.0084.
Overall, all Trump memecoins have experienced a 180 shift over the past few hours, which is not what holders were expecting.
What are the reasons behind all these drops in Trump tokens?
According to Arkham intelligence, Donald Trump’s crypto holdings include $1.33 million worth of TRUMP tokens. Many crypto analysts say this is a positive factor that could boost Trump-themed coins after the election victory. However, instead of gains, they are facing a significant decline, and the main reason for this is that investors have shifted to other popular cryptos like Bitcoin, Ethereum and others.
This is one of the most common trading practices, in which investors flock to rising cryptocurrencies or those that offer long-term investment benefits. This is how a Dormant Ethereum Whale Earned $30 Million Today after returning to the market after 8 years.
With this shift in focus and heavy selling pressure on Trump memecoins after sellers took advantage of the early rally, the tokens are trending downward. As a result, even Donald TRUMP’s holdings are facing a 27.3% decline, and the same goes for the remaining holders. However, this could be a temporary consolidation, occurring after its sudden rise following Trump’s victory.
More importantly, as the market focuses on the largest cryptocurrencies, popular coins as these could face high volatility over the coming days. Once the selling pressure subsides, these Trump tokens may regain strength, but consolidation may continue for now.
Pooja Khardia
With a deep-rooted passion for reading and five years of experience in content writing, Pooja is now focused on creating trending content in the cryptocurrency market. As a dedicated crypto journalist, Pooja is constantly on the lookout for trending topics and informative statistics to create compelling articles for crypto enthusiasts. Keeping up with the latest trends and advancements in the field is an integral part of his daily routine, fueling his commitment to providing timely and insightful coverage.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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