The PoliFi sector is a new part of the crypto industry where cryptocurrencies, mainly memecoins, are linked to famous political figures.
Recently, the campaign committee of one of the major presidential candidates in the United States elections, Donald Trump, said it is open to accepting crypto donations. This led to the rise of a politically affiliated token named Trump MAGA (TRUMP), which was themed after Donald Trump. Immediately after Trump's campaign committee announced this, this memecoin recorded an incredible surge.
On-chain data provider Nansen took the time to report about this new Trump coin, MAGA, on X.
The report was more about the token's increase in value, the addresses buying the token, and the profits/losses recorded.
“Since it was announced that Trump officially accepts cryptocurrency for campaign donations, the price of $TRUMP increased by 14% at the time of writing,” Nansen said on X.
Since it was announced that Trump officially accepts cryptocurrency for campaign donations, the price of $TRUMP increased by 14% at the time of writing
— Nansen 🧠(@nansen_ai) May 21, 2024
So, let's take a look at the top buyers and sellers in the past 24 hours and then explain how to use this information... pic.twitter.com/aMbVP8t7j2
Trump MAGA (TRUMP) Records Impressive Gains
More data from CoinGecko showed that Trump's MAGA (TRUMP) was up by impressive amounts within a short period.
Apparently, this token has become a speculative asset for most traders, with many of them waiting for the best time to get into the trade.
At the time of the report, CoinGecko indicated the TRUMP increased by over 14% only on Tuesday.
Moreover, its price chart over the past two weeks showed another mouthwatering increase of over 90%. At the time of writing, the TRUMP token value stands at $8.94.
TRUMP isn't the only Donald Trump-themed memecoin doing well in the market. Others, such as Super Trump, Baby Trump, and Doland Tremp, are doing great.
Doland Tremp seems to be the best performer, with an increase of over 24% in one week. It has a market cap of over $100 million and a trading volume of over $18 million.
Baby Trump is another token that has had an impressive market performance. Its weekly and monthly price charts are bullish, at more than 7% and 20%, respectively.
Nansen Analysis for Trump MAGA (TRUMP)
The analysis provided by Nansen on the TRUMP token value and holders was quite insightful, showcasing the ups and downs of memecoin speculative trading.
From their data, the majority of the whales buying into TRUMP have a low win rate. In other words, their return on investments is mostly below average.
“When we go through the top 10 onchain TRUMP buyers in the past 24 hours, we find that the majority of addresses have a low avg ROI and win rate, with many having bought TRUMP in the past but have yet to make significant profits,” it said.
Nevertheless, some of those trading TRUMP are sitting on massive profits, although most of them are unrealized.
“As the price of TRUMP has risen over 60% in the past month (at the time of writing), these addresses are gradually taking profits to reduce their exposure. Many of these addresses are up over 1,000% in unrealized gains, often more,” Nansen said.