As a researcher, I found myself taken aback on January 18th when an unanticipated event unfolded in the cryptocurrency market – the sudden introduction of “Official Trump” (TRUMP) memecoin, allegedly endorsed by President-elect Donald Trump. This unexpected move was communicated through his social media platforms, instructing potential investors to acquire the Solana token via a designated intermediary and offering the contract address for reference.
The debut of the memecoin led to a surge in demand for Solana’s native token (SOL), propelling it to an unprecedented peak of $270. This sudden increase has sparked doubts among traders about whether SOL’s current market capitalization of $120 billion can be maintained, and what impact this might have on its rival, Ethereum (ETH). Historically, Ethereum had enjoyed favorable sentiment due to its association with World Liberty Financial, a project linked to Trump. However, the choice to launch Official Trump on the Solana network has generated curiosity.
Official Trump launch timing puts ‘America first’
Enhancing the mystery was the concurrent timing of the launch, which matched with the “Crypto Ball” – a well-attended event where industry titans like Michael Saylor (MicroStrategy), Brian Armstrong (Coinbase CEO), the Winklevoss twins from Gemini, and David Sacks (Trump’s crypto and AI advisor) were present. This high-profile gathering occurred only a few blocks away from the White House in Washington D.C., where tickets were quickly sold out.
As an analyst, I’ve observed a remarkable surge in the market capitalization of the “Official Trump” (TRUMP) token, swiftly reaching a staggering $6.9 billion. This memecoin has made its debut on prominent exchanges such as Bybit, Bitget, and KuCoin, showcasing strong investor interest from the get-go. Launched with 200 million tokens in circulation, it holds a potential total supply of one billion, with a significant 80% allocated to the issuers.
44.4 million TRUMP tokens are said to have been placed into single-sided liquidity pools on the decentralized exchange Meteora (DEX), which manages the automated market-making (AMM) process together with Jupiter DEX. The largest of these pools, worth $483 million in total, is the TRUMP-USDC pool, while the TRUMP-SOL pool holds approximately $67 million. In other words, these liquidity pools do not have a direct counterpart like stablecoins paired with them.
At the moment, the “Official Trump” (TRUMP) token is trading at $24.60 and holds the 28th position among all cryptocurrencies in terms of market capitalization. The daily trading volume for this token surpasses a staggering $7 billion on both decentralized and centralized exchange platforms. Interestingly, this trading volume exceeds that of Dogecoin (DOGE), a memecoin that has been around longer and holds a significant sector leadership position with a market cap of $58 billion. Consequently, the launch of the TRUMP token has brought about substantial advantages for decentralized platforms such as Meteora and Raydium on the Solana network.
Official Trump memecoin solidifies Solana’s dominance in crypto and DeFi
The overall market for meme coins took a hit when traders began focusing on the token associated with the President-elect, “Official Trump” (TRUMP). This token saw significant activity, with over 200,000 users buying it via its official app, Moonshot, contributing to approximately $400 million in trading volume. In comparison, coins like Dogecoin decreased by 6%, Shiba Inu fell by 7.5%, PEPE dropped by 10.5%, and Dogwifhat (WIF) saw a decrease of 8%.
For those with Ether, the situation presented a twofold test. Initially, it bolstered Solana’s reputation as the preferred platform for token issuances. Secondly, it reduced anticipation that the Trump administration would lean towards Ethereum, despite Trump’s past associations with the Ethereum-backed World Liberty Finance initiative.
It’s unclear if the “Official Trump” (TRUMP) token will continue to stay above $20 in value. On the other hand, for Solana (SOL) price to surpass $300, it needs to substantially increase its market presence through increased deposits and institutional acceptance. This growth also relies heavily on the approval of a Solana spot exchange-traded fund (ETF) by the United States Securities and Exchange Commission, which could potentially boost future returns significantly.
This post serves as a source of information rather than as legal or financial guidance. The perspectives, beliefs, and viewpoints shared are those of the author and may not align with the views held by CryptoMoon.
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2025-01-19 02:41