Only a few events have gotten as much attention in the crypto space as the new TRUMP meme coin. This token, positioned for a strong entrance into the larger market, reached a swift market capitalization valuation of $10 billion, which ultimately cinched its frontrunner standing in the limelight. However, a crucial truth has emerged beneath all that growth: the TRUMP meme coin looks to have raised very little in fresh investment for the wider crypto market. While all the action has been happening, the total crypto market cap is still at $3.5 trillion and TRUMP’s success so far has no correlation with the increase in liquidity into the space.
TRUMP Went from Superstar to Sudden Fall
TRUMP memecoin entered the market with a big bang and achieved the impossible-a $10 billion market cap on the first day of its release. Yet, this has not been maintained. As of this writing, the token has dropped to $5.3 billion, which is a whooping drop from its early momentum.
For a token that was supposed to bring some life to the crypto market, it has been less eventful than many thought. According to Garrison Yang, co-founder of Web3 gaming studio Mirai Labs, the difference between the hype and the real impact TRUMP has brought to market liquidity is huge.
“While $TRUMP is now worth billions, the total crypto market cap has barely moved. And while it’s a really interesting headline to say that 400,000 users were onboarded, Phantom was the number one app for a little bit, and it feels like the whole world was paying attention to this token, I think what we actually did was onboard a lot of attention,”
The crypto market itself has been stagnant, barely moved from $3.5 trillion market cap and the initial hype for TRUMP token has not seen any significant movement yet, and analysts see this as no new money in the market.
Yang added that most of the action on TRUMP is existing crypto players not new participants.
“When it comes to actual liquidity and the capital that entered the token; very little of it (on a value basis) was from new people. Unfortunately, we ended up moving the hot ball of money around. And you can see this; especially on-chain with alts on Solana, and the amount of liquidity rapidly funneled into the Solana ecosystem”
The dynamic Yang describes is a bigger phenomenon in the crypto market as a whole: that memecoins move high volume but don’t grow the pie. They rotate old money among existing traders and speculators.
Solana in the TRUMP Token Frenzy
Among the ecosystems affected by TRUMP memecoin’s launch, one should note Solana. According to Chainalysis research, 50% of $TRUMP and $MELANIA token holders were first-time Solana-based token buyers.
Statistics show the meme coin’s influence on Solana where it briefly increased blockchain activity and liquidity. Sources say it even made Phantom, Solana’s popular crypto wallet, the number one app during the hype. However, the attention didn’t translate to growth in the ecosystem or the broader market.
While the buzz was good for Solana, it just reinforced the emerging trend: capital rotation in the ecosystem not new liquidity.
Memecoins and the Problem of Sustainable Growth
The TRUMP memecoin rise and fall is another problem the entire crypto market is facing: how to turn hype into sustainable growth. Memecoins are designed to live on speculation and social media noise but can’t pull out real value in the long term or bring in new money into the space.
Yang said the problem and explained what the industry should shift to. He stressed that attention-driven projects like $TRUMP bring excitement but do nothing to address liquidity and adoption. said Yang. 
From Superstar to Sudden Fall: TRUMP Memecoin Fails to Attract New Crypto Investors! As the TRUMP meme coin moves forward, its future is unclear. The token’s initial success shows the power of branding and hype in crypto, but its inability to bring in new money raises questions about its long-term viability.
Analysts say the way forward will be for the TRUMP meme coin to grow out of its speculative asset. Whether through partnerships, integrations, or utility-driven features, the token has to find a way to be a meaningful player in the market.
Conclusion
The TRUMP memecoin rise and fall shows the volatility of the crypto market. While it got a lot of attention, its impact on the broader market is minimal, and the total crypto market cap is still stagnant.
For $TRUMP and all other meme coins, the problem is to grow out of being a speculative asset class into real value contributors in the crypto ecosystem. Otherwise, without sustainable growth or wider adoption, these tokens will be just a flash in the pan in the ever-changing market.
Moving forward, the lessons from $TRUMP might be the blueprint for future strategies in a space where utility, innovation, and real money are the keys to the next growth wave.
Stay updated with Deythere as we’re available around the clock, providing you with updated information about the state of the crypto world.
FAQs
1. What is the $TRUMP memecoin?
$TRUMP is a meme coin that launched with a first-day market cap of $10 billion. However, it has struggled to hold on to it.
2. Why isn’t the total crypto market cap moving?
Analysts say the TRUMP memecoin didn’t bring in new money but existing players in the crypto ecosystem, so the money flow was inside the market, not an actual inflow of new liquidity.
3. What did the TRUMP memecoin do to Solana?
The memecoin brought some short term attention and activity to the Solana ecosystem, 50% of $TRUMP and $MELANIA token holders are first time Solana based token buyers.
4. What’s the problem with memecoins like $TRUMP?
Memecoins face difficulties in long-term growth. They attract new investors due to their high reliance on speculative interest and social media buzz rather than value creation in the long run.
