Two cryptocurrency tokens associated with US President Donald Trump saw steep declines on Wednesday, falling more than any other assets in the top 100 digital currencies, after Democratic victories in the US midterm elections. The moves contrasted with a broader recovery across major cryptocurrencies.
Trump-linked tokens record sharp declines
Official Trump (TRUMP), a memecoin launched by Donald Trump in January 2025, dropped 17% to $1.33, according to CoinMarketCap data as of 5:32 p.m. UTC. World Liberty Financial (WLFI), a governance token from the Trump family-backed DeFi project World Liberty Financial, fell 7% to $0.047 during the same period. Both tokens had capitalized on the connection to the US president and his family to attract attention and investment from the crypto community.
The selloff was triggered after Democrats achieved surprise wins in key states such as Texas and took control of both the House and Senate. Market observers noted that the change in political power could complicate Trump’s efforts to advance crypto-friendly policies and would likely amplify scrutiny of his family’s crypto ventures.
Analysts also questioned whether political sentiment alone could sustain demand for tokens linked to individual politicians, especially with shifting prospects in Washington.
Contrast with broader crypto gains
While Trump-related tokens faced losses, the broader cryptocurrency market moved higher. Bitcoin (BTC) climbed more than 4% to approximately $80,500, and Ether (ETH) rose 6% to $2,433. Other major cryptocurrencies posted gains as well: BNB increased 3%, XRP rose 2.6%, and Solana (SOL) advanced 2.5%. Total market capitalization for cryptocurrencies rose 3.4% to $2.69 trillion.
| Asset | 24h Price Change | Current Price |
|---|---|---|
| TRUMP | -17% | $1.33 |
| WLFI | -7% | $0.047 |
| MELANIA | -13% | $0.066 |
| BTC | +4% | $80,500 |
| ETH | +6% | $2,433 |
Other tokens connected to the Trump family also saw declines. The MELANIA memecoin, which is associated with First Lady Melania Trump, fell by nearly 13% to $0.066. Meanwhile, a token named after Vice President JD Vance (VANCE) also registered an almost 12% decrease. However, VANCE does not have an established official link to the vice president.
The total market capitalization of politically themed memecoins dropped more than 16% to $477 million, while trading volume surged 123% to $437 million, reflecting heightened activity and volatility in this niche segment.
Mini dictionary: World Liberty Financial is a decentralized finance (DeFi) project backed by the Trump family, focusing on governance and financial instruments designed for the crypto market.
Analyst commentary and regulatory outlook
Benjamin Sarquis Peillard, founder and CEO of Cap, a DeFi platform specializing in stablecoin yield strategies, highlighted the market’s diverging response to politically themed tokens. He explained that established assets such as Bitcoin typically respond to factors like liquidity, institutional activity, and broader macroeconomic trends, while tokens tied to political figures remain highly sensitive to changing expectations in Washington.
Peillard noted that, despite the recovery in core assets, tokens linked to politicians may remain under selling pressure as investors reevaluate their risk exposure in light of the new political environment.
He further stated that the crucial issue for the long term concerns the ongoing demand for these tokens, which currently relies heavily on their association with public figures rather than underlying fundamentals.
The shift in control of Congress also raised broader questions related to digital asset regulation in the US. The Digital Asset Market Clarity Act, also known as the CLARITY Act, remains stalled after failing to secure sufficient support in the Senate earlier in the year. Although the bill aims to provide a regulatory framework for digital assets, its advancement was hampered by Democratic demands for stronger ethical provisions and additional safeguards addressing potential conflicts of interest in Trump-linked crypto projects, as well as by opposition from four Republican senators.
Peillard commented that the midterm election results “introduce a new layer of regulatory uncertainty, particularly around the pace and direction of digital asset legislation.”
He suggested that, for politically linked tokens, regulatory ambiguity could immediately affect sentiment, as the tokens’ fortunes remain tied to changes in the political landscape.
Both the Democratic and Republican parties include members who support and oppose crypto industry objectives. The impact of the election outcome on the future of crypto legislation remains uncertain.
Peillard emphasized that the key challenge for the industry as a whole is whether Congress can develop a stable and consistent regulatory platform for digital assets, regardless of which party is in power.
