Following the news of President Joe Biden’s withdrawal from the presidential race, Kamala Harris’s memecoin (KAMA) saw an unprecedented surge, reaching a market capitalization of $24 million.
Kamala Harris, currently the Vice President of the United States, is now the leading contender to take over the presidential bid, which has garnered significant support from crypto traders focused on the PoliFi sector—a niche category of crypto assets tied to political figures and events.
Record-Breaking Surge
KAMA skyrocketed within minutes of the announcement, hitting an all-time high of 2.4 cents per coin. This swift rise has resulted in a market cap of $24 million at the time of reporting.
KAMA’s market cap is already four times larger than that of its predecessor, BODEN, a memecoin named after President Joe Biden. BODEN, which was a prominent asset in the PoliFi category, plummeted by 50% following Biden’s announcement.
Market Repercussions
The fallout from Biden’s exit wasn’t limited to BODEN. Other memecoins associated with the Biden family, such as JILL BODEN and HUNTER BODEN—named after the First Lady and Biden’s son, respectively—also saw significant declines. JILL BODEN dropped by 68%, while HUNTER BODEN experienced a 24% decrease.
Future Projections
As Kamala Harris is expected to become the Democratic party nominee soon, the potential for KAMA to continue its upward trajectory seems strong.
The State of the PoliFi Sector
The PoliFi sector in cryptocurrency is dedicated to assets linked to political events and figures. This niche market has been particularly active leading up to the U.S. presidential elections in November.
Crypto prediction markets like Polymarket have seen increased activity as traders bet on various political outcomes. Memecoins tied to political figures are especially volatile, reacting sharply to political developments.
For example, the Donald Trump-inspired memecoin MAGA surged by 46.9% following an assassination attempt. Currently, MAGA is up by 1.7% today and has risen by 39.5% over the past two weeks. Another Trump-related coin, Super Trump (STRUMP), increased by 25% on Sunday and saw a 29.1% rise over the week.
KAMA’s rise to a $24 million market cap eclipses BODEN, which suffered a 50% drop after Biden’s departure. These memecoins are often created on platforms like Pump.Fun, hosted on the Solana ecosystem, and are highly sensitive to political changes.
In the wake of Joe Biden’s exit from the presidential race, he endorsed Kamala Harris as the presidential candidate. Harris also received endorsements from former President Bill Clinton, Hillary Clinton, and noted crypto critic Elizabeth Warren.
However, memecoins remain highly volatile and risky investments. The prices of PoliFi memecoins are heavily influenced by political events and public sentiment, leading to frequent and significant price fluctuations.
