The much-hyped TRUMP and MELANIA tokens have taken a nosedive, with prices plunging over 50% in the past 24 hours. Despite initial excitement following the inauguration of U.S. President Donald Trump, heavy profit-taking has left hopeful investors nursing significant losses.
Trading volumes tell a story of initial frenzy. TRUMP token alone saw over $19 billion in trading activity within a day, while MELANIA traded $4.5 billion. These figures surpassed the daily volumes of established cryptocurrencies like Tron (TRX) and Cardano (ADA), which traded under $4 billion each during the same period.
Market Sentiment Sours Post-Inauguration
Expectations of a pro-crypto narrative from Trump’s inaugural speech fell flat, sending shockwaves through the crypto market. Bitcoin, which had climbed above $109,000 before the speech, tumbled to just over $101,000 hours later. The absence of any reference to a strategic Bitcoin reserve or blockchain policies left traders disappointed.
(Seoulcalibur.eth/Dune)
On platforms like Moonshot, which enabled early retail trading of TRUMP, buying volumes dropped sharply. Data from Dune Analytics showed a decline in average daily trading volume from over $6 million on January 18-19 to just $1 million in the past day.
Futures Markets Hit Hard
The token decline extended to futures trading, with liquidations totaling nearly $70 million for those betting on higher prices. This highlights the volatile nature of memecoins, even those linked to high-profile personalities.
Despite their popularity, the tokens’ plunge has sparked skepticism about their long-term value. The sharp decline underscores the risks associated with speculative trading in unproven assets.
Optimism Shifts to Solana’s SOL Tokens
While Trump-themed tokens faltered, traders are now turning their attention to Solana (SOL) amid speculation about a potential pro-crypto policy shift. Singapore-based QCP Capital noted the launch of $TRUMP on the Solana blockchain as a “significant endorsement” of the platform. This development has fueled hopes for the early approval of a Solana-based ETF, potentially driving new retail and institutional inflows.
The memecoin mania may have subsided, but the crypto market remains optimistic. Institutional investors await tangible policies that could solidify a pro-crypto stance under the Trump administration.The sudden rise and fall of Trump-themed tokens highlight the volatility of the crypto market. While traders remain hopeful for future policies, the recent downturn serves as a reminder of the speculative risks inherent in memecoins. For now, the focus shifts to established assets like Solana, as investors brace for the next big move in the evolving crypto landscape.
