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In a week marked by significant fluctuations in major cryptocurrencies, Donald Trump-themed Political Finance (PoliFi) tokens have exhibited notable resilience and growth.
As Bitcoin and other major cryptocurrencies like Ether and Dogecoin experienced declines of up to 6% due to renewed regulatory concerns and inflation pressures, Trump-related tokens such as MAGA, MAGA HAT, and TREMP on the Solana blockchain bucked the trend.
MAGA led with an impressive 55% increase, pushing its market cap beyond the $200 million mark. Meanwhile, MAGA HAT and TREMP recorded 102% and 93% gains, respectively.
These tokens belong to an even larger class called PoliFi tokens, enabling traders to predict politicians' political outcomes. Their surge comes ahead of a boost in Donald Trump’s chances of winning the next US presidential election, which increased to a two-month high on the prediction market Polymarket.
According to the available data, traders have assigned the probability of Trump’s victory at 55.8 %, which is far beyond Vice President Kamala Harris's current probability of 43.8%.
While Trump-themed tokens rally, the broader crypto market faces a mixed outlook. Bitcoin briefly dipped below $60,000 before regaining footing, reflecting persistent anxieties about regulatory crackdowns and macroeconomic uncertainties.
The reacceleration of inflation in September initially sent shockwaves through the market, dragging down significant cryptocurrencies. However, specialized tokens tied to political movements appear less affected by these broader economic signals.
In addition to political tokens, Uniswap's native token, UNI, saw a 10% rise after the decentralized exchange announced the rollout of its own Layer-2 network built on Optimism. This development suggests that technological innovations and platform enhancements continue to drive investor interest within specific segments of the crypto market.
The potential for additional economic stimulus in China also looms large over the crypto market. Reports from Bloomberg indicate that market participants in China anticipate approximately $283 billion in new fiscal stimulus, which could be introduced soon this weekend. Such measures have historically spurred rallies in both traditional and digital asset markets.
However, a recent analysis from BCA Research tempers expectations, suggesting that the "credit impulse" from the latest stimulus may be insufficient to generate sustained economic uplift or a prolonged rally in risk assets, including cryptocurrencies.
