Political meme coins are having an incredible year due to the presidential elections in the United States and the clash between Democrat Kamala Harris and Republican Donald Trump, regarding the crypto sector.
The US elections, scheduled for November 5, have also boosted the predictive and betting platform Polymarket.
Data from Dune Analytics shows that Polymarket is expected to break monthly trading volume records in September. This is because revenue is expected to surpass the US$472.2 million in revenue from the previous month.
However, the data also reveals that much of this activity is directly related to the US elections, thus observing less interest in other markets, such as sports and pop culture.
According to Jurica Dujmović, editor at Weiss Ratings, the long-term viability of political meme coins is a complex question. While their current popularity is undeniable, more is needed to move beyond a mere novelty and ensure sustainability.
These tokens operate at the intersection of finance and political engagement, which places them in a unique position within the crypto ecosystem. However, their value is largely tied to speculative interests and fleeting political narratives. This poses challenges for long-term sustainability.
According to him, for these currencies to have a long life, they need to evolve beyond their initial premises and develop tangible utility or foster lasting communities.
This evolution is not impossible. However, Dujmović warns, it represents a significant challenge, which few have managed to overcome successfully so far.
He therefore believes that we will see a “recalibration” of interest after the elections, but that the enthusiasm for meme coins will not disappear overnight. “Political speeches and engagements do not end with the elections,” Dujmović says.
Where does this popularity come from?
According to Dujmović, the popularity of this type of meme coin is associated with the fact that they are a new form of political expression. And they allow the owners of these tokens to feel like they are part of a wider community, which brings together individuals with similar thoughts and beliefs.
There’s no denying that some investors have been drawn in by the prospect of amazing returns. However, volatility works both ways, and there are many risks involved.
Political alignment vs. Jurica Dujmović
Another issue raised in this debate is the political identification of those who acquire these types of tokens. Rennick Palley, founder of the hedge fund Stratos, who has invested in these meme coins in the past, argues that owning tokens denominated in favor of politicians does not necessarily mean that you are aligned with their policies.
“This is not an endorsement. Boden is a good example. His success and failure were not directly tied to the arc of the Biden campaign. While he ultimately failed, it was more due to a lack of relevance,” Palley argues.
He believes PolitiFi will struggle to maintain its relevance after the election, and points out that memes are inherently ephemeral.
What to expect in other countries?
According to Dujmović, the trend around political meme coins has so far been concentrated mainly in the United States. However, this movement has the potential to expand globally in the future.
He stated, however, that this depends on several factors, such as: the regulation of cryptocurrencies in other countries, how massively (or not) these economies adopt these digital assets and how their political systems are organized.
