Official Trump (TRUMP) and World Liberty Financial (WLFI) recorded the largest Wednesday declines among the 100 biggest cryptocurrencies following the US midterm elections. CoinMarketCap figures around 5:32 p.m. UTC showed TRUMP down 17% over 24 hours at $1.33. The same data showed WLFI down more than 7% at $0.047. Democrats took control of the House and Senate from Republicans in Tuesday's elections, with unexpected victories in Texas among the party's gains.
TRUMP launched in January 2025 as President Donald Trump's official memecoin. WLFI provides governance rights for World Liberty Financial, a decentralized finance project backed by the Trump family that launched in 2024. The election outcome could impede Trump's crypto agenda and expose the Trump family's crypto businesses to greater scrutiny. Analysts say the token declines also cast doubt on whether political sentiment alone can sustain demand for Trump-linked tokens.
However, CoinMarketCap data showed Bitcoin rising more than 4% over 24 hours to around $80,500. Ether advanced 6% to $2,433. BNB gained 3%. XRP increased 2.6%. Solana rose 2.5%. The overall cryptocurrency market gained 3.4%, reaching $2.69 trillion.
Other tokens associated with the Trump family also declined. MELANIA, a memecoin associated with First Lady Melania Trump, lost nearly 13% over 24 hours to around $0.066. VANCE, a separate token bearing Vice President JD Vance's name, fell nearly 12%, despite having no confirmed official connection to Vance. CoinMarketCap data put the political memecoin sector's market capitalization at $477 million after a daily decline exceeding 16%. The sector's trading volume increased 123% to $437 million.
Benjamin Sarquis Peillard founded and leads Cap, a decentralized finance platform specializing in stablecoin yields. Peillard said investors appear to distinguish politically linked tokens from other cryptocurrencies. Peillard said liquidity, institutional flows and macroeconomic conditions jointly influence Bitcoin and other established assets, whereas politically linked tokens can react more strongly to changing expectations about Washington. Peillard said investors reassessing risk exposure may sell politically linked tokens even during a broader market recovery. The selloff could represent a short-term response to the election outcome. Peillard said the longer-term issue is whether demand for these tokens has support beyond an association with a political figure.
The election outcome also creates questions about US crypto legislation, including the stalled Digital Asset Market Clarity Act, known as the CLARITY Act. The bill seeks to create a regulatory framework for digital assets. The Senate did not advance the bill earlier this year because support fell below the required 60 votes. Democrats sought tougher ethics provisions and protections against conflicts of interest involving Trump's crypto ventures. Four Republicans also voted against advancing the bill.
Peillard said the election results increase regulatory uncertainty, especially over how quickly digital asset legislation develops and what direction legislation takes. Peillard said that uncertainty can affect politically linked tokens more immediately because investor sentiment partly depends on expectations about the political environment. Lawmakers in both parties continue to include supporters and opponents of the crypto sector. The election outcome's effect on crypto legislation remains uncertain. Peillard said the broader industry's more important issue is whether Congress can create a lasting regulatory framework that offers clarity regardless of the party in power.
TRUMP and WLFI Tokens Drop After Democrats Win US Midterms
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Summary
The fear and greed index dipped as Trump (TRUMP) and World Liberty Financial (WLFI) tokens fell sharply after Democrats won the US midterms. TRUMP dropped 17% to $1.33, WLFI fell over 7% to $0.047. Analysts say the result could slow Trump’s crypto agenda and raise scrutiny on his family’s projects. Altcoins to watch like MELANIA and VANCE also declined. The political memecoin market cap fell 16% to $477 million. Benjamin Sarquis Peillard of Cap said the outcome adds regulatory uncertainty for the broader crypto industry.
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