Amid a historic live televised face-off between incumbent President Joe Biden and former President Donald Trump, memecoins inspired by the two candidates fell in price.

A thriving memecoin ecosystem has been built around the two presidential candidates, with the market cap of political-themed tokens now standing at $1.3 billion, reflecting a 6.7% expansion over the last 24 hours, according to Coingecko's PolitiFi token category.

Several prominent memecoins inspired by the candidates have experienced significant declines in value in the past hour.

The Ethereum-based MAGA (ticker: Trump) has seen a decline of 6.4% in the past hour, while MAGA Hat (ticker: MAGA) slid by 10.8% over the past hour.

On the Solana blockchain, Jeo Boden (ticker: BODEN) has recorded a decline of 26%, and Doland Tremp (ticker: TREMP +0.16% ) has fallen by 9.4% over the past hour. Meanwhile, the Ethereum-based Super Trump (ticker: STRUMP) has experienced a decrease of 1.8%. The significant price movements highlight the volatility within this sector of the cryptocurrency market amid the publicity surrounding the televised debate.

PolitiFi memecoins acting as a presidential popularity gauge 

According to Memepad founder Max Jones, as the U.S. presidential election campaign heats up, the PolitiFi memecoins may serve as a popularity check among the respective candidates.

"Though their volatility is linked to the hype around the politicians they track, their growth also takes a deep leaning toward the broader market. While it remains unknown which of these memecoins will stand the test of time, they currently serve as an uncommon litmus test for Trump, Biden, and Robert F. Kennedy, Jr (RFK)," Jones told The Block.

Traders were watching the live debate for clues as to what November's election might mean for bitcoin and the wider cryptocurrency sector. "Donald Trump has been more forthcoming with his views on the subject, claiming Joe Biden has a ‘hatred of bitcoin’ and calling for the remaining, unmined bitcoin to be ‘made in the USA’," Stocklytics analyst Neil Roarty told The Block.

Donald Trump seen as more friendly toward the crypto space

According to Bitfinex analysts, Trump is seen as a pro-innovation candidate for the cryptocurrency sector. "The Winklevoss twins, prominent figures in the cryptocurrency space, have shown their support for Trump by donating $2 million in bitcoin to his campaign. This move signifies a growing perception of Trump as a pro-innovation candidate within the crypto and traditional finance (TradFi) communities," Bitfinex analysts told The Block.

Bitfinex analysts view a Trump win in November would signal a shift towards more favorable regulatory conditions for the cryptocurrency industry in the U.S. "During his campaign, Trump has shown support for bitcoin and other cryptocurrencies, which contrasts with the current administration's more cautious and regulatory-heavy approach. A Trump administration might prioritize creating a clear and supportive regulatory framework, encouraging innovation and investment in the crypto sector," Bitfinex analysts added.

However, according to Moe Vela, a former senior advisor to Joe Biden, viewers of the debate are focusing on which candidate is physically, mentally and possibly morally fit for office. "This debate is less about substance and more about character contrasts, disparate displays of statesmanship, and about two octogenarians trying to prove their vitality, vigor, and viability," Vela told The Block.

The U.S. presidential debate kicked off Thursday at 9 p.m. ET on CNN and was the first time the two candidates shared a debate stage since 2020.