Two crypto tokens linked to US President Donald Trump led losses among the top 100 digital assets on Wednesday following the US midterm elections, raising questions about their future as the broader crypto market rallied.
Official Trump (TRUMP) fell 17% over 24 hours to $1.33, while World Liberty Financial (WLFI) dropped over 7% to $0.047, according to CoinMarketCap data from around 5:32 p.m. UTC. TRUMP is the president’s official memecoin, launched in January 2025, while WLFI is the governance token of World Liberty Financial, a Trump family-backed decentralized finance (DeFi) project launched in 2024.
The declines followed a wave of Democratic victories, including surprise wins in Texas, in Tuesday’s midterm elections, with the party winning control of both the House and Senate from Republicans.
The results could not only make it harder for Trump to push forward his crypto plans but also bring more scrutiny to his family’s crypto businesses. Analysts say the losses also raise questions about whether political sentiment alone can fuel demand for Trump-linked tokens.
Political tokens slide while Bitcoin, Ether rally
Bitcoin (BTC) rose more than 4% over 24 hours to around $80,500, while Ether (ETH) climbed 6% to $2,433, according to CoinMarketCap data. Other major cryptocurrencies also posted gains, with BNB rising 3%, XRP climbing 2.6% and Solana (SOL) gaining 2.5%. The overall crypto market rose 3.4% to $2.69 trillion.
Meanwhile, the losses extended to other Trump family-linked tokens, such as the MELANIA memecoin, associated with First Lady Melania Trump. MELANIA dropped nearly 13% over 24 hours to around $0.066.
A separate token named after Vice President JD Vance (VANCE) also dropped nearly 12%, although it has no confirmed official connection to the vice president.
The losses were further reflected across the broader political memecoin market with the sector’s total market capitalization falling more than 16% on the day to $477 million. Trading volume jumped 123% to $437 million, per CoinMarketCap data.
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A growing divergence raises lingering questions
Benjamin Sarquis Peillard, founder and CEO of Cap, a DeFi platform focused on stablecoin yields, told Cointelegraph that investors appear to be treating politically linked tokens differently from other cryptocurrencies.
“Bitcoin and other established assets respond to a combination of liquidity, institutional flows and macroeconomic conditions, while politically linked tokens can be more sensitive to shifts in expectations around Washington,” he said. “Even as the broader market recovers, those tokens may face selling pressure if investors begin reassessing their risk exposure.”
And while the selloff could be indicative of a short-term reaction to the election results, Peillard said the “longer-term question is what supports demand for these tokens beyond their association with a political figure.”
The CLARITY Act and beyond
Beyond the market reaction, the election results also raise questions about the future of US crypto legislation, including the currently stalled Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act.
The bill, which aims to establish a regulatory framework for digital assets, failed to advance in the Senate earlier this year after falling short of the 60 votes required. Democrats were pushing for stronger ethical provisions and safeguards against conflicts of interest involving Trump’s crypto ventures – four Republicans also opposed advancing the legislation.
“The midterm results introduce a new layer of regulatory uncertainty, particularly around the pace and direction of digital asset legislation,” Peillard said. “For politically linked tokens, that uncertainty can have a more immediate impact because investor sentiment is partly tied to expectations around the political environment.”
While the crypto sector continues to have support – and opposition – from lawmakers in both parties, it remains to be seen how the election results will affect crypto legislation.
Peillard said that for the broader industry, the “more important question is whether Congress can establish a durable regulatory framework that provides clarity regardless of which party holds power.”
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