- Token’s team controls 85% of supply with 800M tokens locked, while trading volume surged by 1,400%
- Altcoin become the fifth-largest memecoin with over $7 billion market cap.
The debut of the OFFICIAL TRUMP memecoin on Solana has been a showcase of earnings, guesswork, and debate. Although the token’s rapid ascent has garnered considerable interest, recent large-scale transactions by key players and manipulation of the supply by insiders are causing concern about the project’s longevity.
OFFICIAL TRUMP price analysis: The rally and the risks
After its debut, the OFFICIAL TRUMP memecoin has experienced a remarkable surge in value, climbing from $10 to $35 – representing an impressive 250% increase over just a few days. A closer look at the candlestick chart showed distinct stages during this price rise. The trend appeared to consist of continuous green candles, which suggest gradual buying by early enthusiasts and investors.
During this period, trading activity was relatively average but consistently rising – a clear indication of mounting market curiosity. Currently, the trading volume has surpassed $11 billion, marking a remarkable 1,400% jump within the past day.
Once it reached $25, the memecoin went through a short period of stability, indicated by interchanging green and red candles. This suggested a temporary struggle between buyers and sellers. Later on, OFFICIAL TRUMP experienced a substantial increase from $28 to $35, with large green candles accompanied by significantly higher trading volumes. This spike in value underscored the renewed interest in speculation, primarily fueled by social media excitement and the fear of missing out (FOMO).
Nevertheless, the rally has been marked by significant price swings. In truth, the graph shows long tails on both sides of multiple candles, suggesting quick changes in prices within a day. This kind of volatility is typical of memecoins, providing further proof of the speculative aspect of TRUMP’s trading behavior.
Whale activity and dumping risks
In other developments, it’s worth noting that large investors, or ‘whales’, appear to be cashing out. A conspicuous transaction showed a whale selling off 860,895 OFFICIAL TRUMP tokens for approximately $23.8 million in USDC. This sale by the whale more than quadrupled their initial investment of $12 million, which they made at an average price of around $13.94 per token.
Big investors are selling off their OFFICIAL TRUMP tokens. A significant transaction saw one such investor sell 860,895 tokens for about $23.8 million USDC. This sale made them more than four times the money they initially invested ($12 million) when they bought at an average price of around $13.94 per token.
While this deal showcased TRUMP’s profitable possibilities for major stakeholders, it simultaneously increased the risk level for individual investors.
As a crypto investor, I find myself increasingly worried about the centralization of this particular digital asset. The latest news suggests that a significant chunk, around 85%, of its total supply is under the control of the Trump team. This raises concerns as they’ve already cashed out approximately half a billion dollars worth of tokens from their holdings.
As per the information provided by Tokenomist, approximately 8 out of every 10 OFFICIAL TRUMP tokens (that’s 800 million to be precise) are being held securely, leaving around 20% available for circulation at this moment.
OFFICIAL TRUMP’s place in the Memecoin ecosystem
Given its rapid expansion, OFFICIAL TRUMP has solidified its place in the upper echelons of popular meme coins by market value. At present, it is valued around $7.4 billion, making it the fifth largest meme coin, just behind PEPE‘s market cap of approximately $7.5 billion.
At the moment of reporting, the combined value of all meme-based cryptocurrencies reached a remarkable $116 billion, with Dogecoin holding the top spot, accounting for approximately $57.8 billion of that total.
Impact on Solana – Boosted metrics and speculative appeal
Trump’s official announcement has noticeably accelerated action within the Solana network. This surge led to Solana’s Total Value Locked (TVL) reaching a record-breaking peak of nearly $11.3 billion.
Furthermore, daily transaction volumes significantly escalated, reaching approximately 850,000 on the blockchain at TRUMP’s height. In just two days, the volume jumped from around $9 billion to nearly $20 billion – Establishing a new network high.
As a result of the memecoin mania, Solana’s native token, SOL, experienced an increase from $180 to $270. Moreover, the bullish intersection of the 50-day and 200-day moving averages has added extra force to SOL’s rising trendline.
Broader concerns and future outlook
Although Trump’s influence is clear in Solana’s performance, its centralized structure and attractiveness for speculators bring up serious issues in the long run. Since a large chunk of the supply is held by whales and insiders, there’s a high risk of market manipulation and potential massive sell-offs.
From my perspective as an analyst, the long-term success of this meme coin relies heavily on its transformation from a purely speculative investment into something that offers real-world utility or value. Currently, it stands as a powerful demonstration of the astonishing potential within meme coins, but also serves as a reminder of the inherent risks they carry.
Time alone will tell if this meme-based currency trend continues to thrive or vanishes like many other temporary fads.
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2025-01-19 19:04