Trump-linked cryptocurrency tokens led losses among the top 100 digital assets on Wednesday following the US midterm elections, where Democrats won control of both the House and Senate. The Official Trump (TRUMP) token and World Liberty Financial (WLFI) token declined significantly, contrasting with gains in major cryptocurrencies such as Bitcoin and Ether.

Political Tokens Decline

The Official Trump (TRUMP) memecoin, launched in January 2025, fell 17% over 24 hours to $1.33, according to CoinMarketCap data recorded around 5:32 p.m. UTC. World Liberty Financial (WLFI), the governance token for a Trump family-backed decentralized finance project launched in 2024, dropped more than 7% to $0.047 during the same period.

Other politically associated tokens also faced downward pressure. The MELANIA memecoin decreased nearly 13% to approximately $0.066. A separate token named VANCE, which has no confirmed official connection to Vice President JD Vance, fell nearly 12%. The total market capitalization of the political memecoin sector dropped more than 16% to $477 million, even as trading volume for the sector jumped 123% to $437 million.

Broader Market Gains

Despite the decline in political tokens, the broader cryptocurrency market posted gains. Bitcoin (BTC) rose more than 4% over 24 hours to around $80,500. Ether (ETH) climbed 6% to $2,433, while BNB increased 3%, XRP gained 2.6%, and Solana (SOL) rose 2.5%. The overall crypto market capitalization increased 3.4% to $2.69 trillion.

Regulatory Context and Analysis

Benjamin Sarquis Peillard, founder and CEO of Cap, stated that politically linked tokens are more sensitive to shifts in Washington expectations than established assets. He noted that these tokens may face selling pressure if investors reassess their risk exposure, even as the broader market recovers.

"The midterm results introduce a new layer of regulatory uncertainty, particularly around the pace and direction of digital asset legislation," Peillard said. Earlier this year, the Digital Asset Market Clarity Act (CLARITY Act) failed to advance in the Senate after falling short of the 60 votes required. During debates on the bill, Democrats pushed for stronger ethical provisions regarding Trump’s crypto ventures, while four Republicans also opposed advancing the legislation.