The Kamala Harris-themed memecoin, KAMA, has experienced a dramatic surge, reaching a market capitalisation of $24 million.
This spike followed the announcement by President Joe Biden on Sunday he will not be running in the upcoming November presidential race.
As the current Vice President and now the leading contender for the Democratic nomination, Kamala Harris, has gained significant support from crypto traders involved in the PoliFi (Political Finance) sector of cryptocurrencies, KAMA’s value surged within minutes of Biden’s announcement, hitting an all-time high of 2.4 cents.
This rapid rise in KAMA’s market capitalisation positions it significantly ahead of BODEN, a memecoin inspired by President Biden, which saw a 50% drop following his decision to step down from the race to US presidency. Other Biden-related memecoins, such as JILL BODEN and HUNTER BODEN, named after the First Lady and Biden’s son, also suffered substantial losses, plummeting by 68% and 24%, respectively.
The increase in KAMA’s value reflected the market’s anticipation of Harris becoming the Democratic party nominee. With endorsements from Joe Biden, former President Bill Clinton, Hillary Clinton, and crypto critic Elizabeth Warren, Harris’ candidacy appeared strong, potentially driving KAMA to new heights.
The PoliFi sector, where cryptocurrencies are linked to political figures and developments, has been particularly active as the U.S. presidential elections approach. Crypto prediction markets like Polymarket have seen a rise in traders betting on political outcomes, further energizing the sector.
Donald Trump-inspired memecoins have also shown volatility. The leading Trump memecoin, MAGA, surged by 46.9% following an assassination attempt on Trump, and it continues to perform well, with a 1.7% increase today and a 39.5% rise over the past two weeks. Similarly, Super Trump (STRUMP) has seen a 25% increase on Sunday and a 29.1% rise over the past week.
The memecoins, easily created on Pump.Fun within the Solana ecosystem, remain highly susceptible to political developments. Despite their popularity, they are risky investments due to their high volatility and the potential for significant losses. The POLIFI category, in particular, is heavily influenced by political events and public sentiment, making it a speculative and unpredictable market.
