TRUMP Memecoin Frenzy Fails to Attract New Market Investment

The market capitalization of the Donald Trump-themed memecoin, Official Trump (TRUMP), briefly surpassed $14.5 billion, yet it had no significant impact on the overall cryptocurrency market. This was noted by CoinDesk.

Headlines about “engaging 400,000 users” indeed created the impression of global attention, commented Harrison Yang, founder of the gaming Web3 studio Mirai Labs, to the publication. However, most of the excitement remained at the discussion level, the expert added.

“When it comes to actual liquidity and capital entering the token, a very small portion (in value terms) came from new people. Unfortunately, in the end, we just saw the movement of hot money,” Yang stated.

According to him, this was particularly noticeable in the influx of funds into the Solana ecosystem.

Research by Chainalysis indicates that approximately 50% of TRUMP investors had not previously owned blockchain assets and created wallets on the day they purchased the memecoin.

5/8 ?These are largely new retail buyers. ~50% of $TRUMP and/or $MELANIA token holders have never bought a Solana altcoin (tokens on the Solana blockchain excluding $SOL and stablecoins) before. Nearly half of buyers created their wallets the day they purchased the tokens. pic.twitter.com/b7OwxaCCv4

— Chainalysis (@chainalysis) January 23, 2025

On January 19, the token’s price peaked at $73.43, but plummeted following the inauguration of the current U.S. president the next day. At the time of writing, TRUMP is trading around $26, having dropped nearly 11% in the past 24 hours.

The token’s market capitalization is approximately $5.2 billion. Meanwhile, the fully diluted valuation, considering coins locked in vesting, approaches $26 billion.

According to a dashboard on Dune, the number of TRUMP holders has decreased significantly. The vast majority of investors remain at break-even or are incurring losses up to $1,000.

Back in January, Trump’s launch of the memecoin before taking office raised ethical questions among experts. The U.S. Congress cited a potential conflict of interest concerning all of the president’s crypto projects, including World Liberty Financial.