TRUMP Token Falls 17%, WLFI Drops 7% After Democrats Sweep Midterms

Two crypto tokens tied to President Donald Trump, the official TRUMP (CRYPTO: $TRUMP) memecoin and World Liberty Financial’s WLFI (CRYPTO: $WLFI), led losses among the top 100 cryptocurrencies on Wednesday after Democrats won control of Congress in the U.S. midterm elections.

The slide came while the rest of the market rallied. The results could make it harder for Trump to push his crypto plans through Congress and invite more scrutiny of his family’s crypto businesses, and analysts say the divergence raises questions about whether political sentiment alone can sustain demand for the tokens.

According to CoinMarketCap data, TRUMP fell 17% over 24 hours to $1.33, while WLFI dropped more than 7% to $0.047. TRUMP is the president’s official memecoin, launched in January 2025, and WLFI is the governance token of World Liberty Financial, a Trump family-backed DeFi project launched in 2024.

The losses spread to other politically themed tokens. The MELANIA (CRYPTO: $MELANIA) memecoin, associated with First Lady Melania Trump, fell nearly 13% to around $0.066, and a separate token named after Vice President JD Vance dropped nearly 12%, although it has no confirmed official connection to him. The political memecoin sector’s market value fell more than 16% to $477 million, while trading volume jumped 123% to $437 million.

The selloff reached Wall Street too. Trump Media & Technology Group (NASDAQ: $DJT), the owner of Truth Social, in which Trump holds about 41%, hit a record low of $5.23 at the open, down more than 11% from the previous close. The stock was down about 16% around midday, and is off more than 55% this year. The company has pivoted into bitcoin (CRYPTO: $BTC) and prediction markets, but those moves have yet to pay off.

The rest of the crypto market moved the other way after an overnight dip. Bitcoin rose more than 4% to around $80,500 and Ether (CRYPTO: $ETH) gained 6% to $2,433, with BNB, XRP (CRYPTO: $XRP) and Solana (CRYPTO: $SOL) up between 2.5% and 3%. The total crypto market climbed 3.4% to $2.69 trillion.

Benjamin Sarquis Peillard, founder and CEO of DeFi platform Cap, told Cointelegraph that bitcoin and other established assets track liquidity, institutional flows and macroeconomic conditions, while politically linked tokens are more sensitive to shifts in expectations around Washington. The selloff may prove a short-term reaction, he added, but the longer-term question is what supports demand for these tokens beyond their association with a political figure.

The election also clouds the future of crypto legislation, including the stalled Digital Asset Market Clarity Act. The bill failed to advance in the Senate earlier this year after falling short of the 60 votes needed, with Democrats pushing for stronger ethics provisions on conflicts of interest involving Trump’s crypto ventures and four Republicans also opposed. “The midterm results introduce a new layer of regulatory uncertainty,” Peillard said, particularly around the pace and direction of digital asset legislation.

Trump-linked tokens were already declining ahead of the vote amid a broader crypto market correction. Meanwhile, Bloomberg reported that crypto firms tied to Trump have hired lawyers and lobbyists in anticipation of potential investigations by Democrats.

Shares of Trump Media & Technology Group (NASDAQ: DJT) are currently trading at $4.55, down from a 52 week high of $17.09.