United

Donald Trump

Super Trump Coin

Joe Biden

Crypto analysts have cautioned that meme coins with political themes are expected to experience continued volatility in the coming week. This is particularly true of the upcoming United States presidential debate, which will air live on June 27. 
Also Read: <a href="https://www.cryptopolitan.com/why-is-bitcoin-down-today-btc-below-64k/">Why is Bitcoin down today? BTC slips below $64K</a> 
According to analysts at Bitfinex, the PolitiFi tokens are now being seen as speculative assets tied to the outcome of the upcoming elections. As a result, they may experience significant fluctuations in value leading up to, during, and after the debate between the two main candidates, incumbent President Joe Biden and former President Donald Trump. 
<h2 class="wp-block-heading" id="meme-coins-volatility-flows-into-the-weekend">Meme coins volatility flows into the weekend</h2> 
In recent months, the crypto market has seen the launch of various tokens inspired by prominent political figures. These include Super Trump (STRUMP) and Maga (TRUMP) on the Ethereum network, Maga Hat (MAGA) on the BNB Smart Chain, and Jeo Boden (BODEN) and Doland Tremp (TREMP) on the Solana network. 
These meme coins have gained significant market caps and trading volumes, attracting attention from crypto community members. According to data from Coingecko’s PolitiFi token category, meme coins currently boast a combined market capitalization exceeding $1 billion, with a 24-hour trading volume surpassing $260 million. 
<figure class="wp-block-image"> 
 <figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXcv1o2RntGnNdMESZztoLUmJKq5c6jeTJkMIx8tbMEti4pvyd1qvtSGe-A734oWSQy7pkIPBYh8uC5itvB6_ltz60tf82-ZkntSqDMoH2e3ErBgY7f0BqfiYR7CXMQtmE4p4w_jG4PCb8an3nnNv24vyP4?key=NysMqnzLc9JY5kB0Xy9RMg" alt="" width="1600" height="323">
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 Source: CoinGecko
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</figure> 
The crypto market is currently in decline, with significant assets such as Bitcoin (BTC) and Ether (ETH) experiencing double-digit losses in the past month. In the past week, tokens such as TRUMP, MAGA, TREMP, and BODEN have experienced substantial declines, with double-digit losses.&nbsp; 
It is worth mentioning that the decline in Trump-related tokens was further exacerbated by the rumors surrounding the introduction of an official DJT token on the Solana network. 
<h2 class="wp-block-heading" id="trump-and-biden-to-discuss-crypto-frameworks">Trump and Biden to discuss crypto frameworks</h2> 
Both Biden and Trump will present their respective policy proposals during the upcoming U.S. presidential debate. The debate will cover a conversation about legislative processes, potentially delving into the frameworks that impact cryptocurrencies. 
Discussions surrounding capital gains taxes and crypto taxation policies have caught the community’s attention and, according to Bitfinex analysts, could potentially impact the market. 
<blockquote> 
 There could be significant movement for ‘Politifi’ tokens during and after the debate depending on their performance as these tokens have turned into speculative assets themselves in terms of the election results […] What could be interesting and have market impact is discussion around capital gains taxes in general and crypto taxation policies in particular. 
 <a href="https://www.theblock.co/post/301206/political-memecoins-expected-to-see-volatility-as-trump-biden-debate-nears-analysts-say" rel="nofollow noopener" target="_blank">Bitfinex analysts.</a> 
</blockquote> 
Amid it all, influential crypto community members have expressed their endorsement of Trump, citing his favorable position on crypto. Yesterday, the Winklevoss twins, co-founders of crypto exchange Gemini, announced their $1 million BTC donations to Trump’s campaign and expressed their intention to vote for him. 
Also Read: <a href="https://www.cryptopolitan.com/winklevoss-twins-refunded-for-trump-donation/">Winklevoss twins refunded for donating Bitcoin to Trump above the legal limit</a> 
Later reports by Bloomberg add that Tyler and Cameron Winklevoss received partial refunds after their donation of Bitcoin (BTC) to the Donald Trump presidential campaign exceeded the legal limit. 
<h2 class="wp-block-heading" id="meme-coins-liquidity-hits-record-high">Meme coins liquidity hits record high</h2> 
Thanks to the recent surge in liquidity, executing trades in popular meme coins has become more convenient than ever before. According to data tracked by Paris-based Kaiko, liquidity has reached record highs as measured by 1% market depth. 
According to the data, the total value of DOGE, SHIB, PEPE, WIF, BONK, GROK, BABYDOGE, FLOKI, MEME, HarryPotterObamaSonic10Inu, and HarryPotterObamaSonic reached $128 million.&nbsp; 
The chart illustrates the overall worth of purchase and sale orders within a 1% range of the current market price. Greater liquidity makes carrying out substantial transactions at consistent prices more convenient. 
<figure class="wp-block-image"> 
 <figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXcBbCn3IG_IR7QJaKk8SNXDslHMzL0TndfjnzDyuvLEhx0eTFt6F63IVLc261u6MvVIAl5jBGgONjIg_tzVHbwWp8mzYmiQiEw7Q0eLeceC2GiMrlVOTpTJuencX19enB9KOB4G4o2k3YZvphwttGtHNOTz?key=NysMqnzLc9JY5kB0Xy9RMg" alt="" width="811" height="438">
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 Source: Kaiko (Meme tokens 1% market depth)
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In general, greater liquidity results in a smaller difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, known as the bid-ask spread.&nbsp; 
Optimizing spreads leads to improved trading pricing and decreased trade execution costs. On the other hand, as per Kaiko’s data, meme coins are not showing any response, and the bid-ask spreads continue to be above 2 basis points on the majority of centralized exchanges. 
Kaiko adds, “This suggests that while more market makers are venturing into providing liquidity for these tokens, they are still considered risky due to their high volatility.” 
Cryptopolitan Reporting by Florence Muchai

Meme coins volatility peaks as US presidential debate looms

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