Can TRUMP Memecoin Sustain Its Momentum In Crypto?

January 26, 2025 09:00 PM PST | By Team Kalkine Media

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Can TRUMP Memecoin Sustain Its Momentum In Crypto? — Image source: shutterstock

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Highlights:

TRUMP memecoin initially surged to a substantial market cap but has since shown signs of decline.

Despite attracting hundreds of thousands of new users, the overall crypto market cap remained stable.

Liquidity primarily flowed into Solana, with little fresh capital entering the market.

The launch of the TRUMP memecoin sparked considerable attention across the cryptocurrency sector, achieving a market cap of over $10 billion on its first day. However, the subsequent performance of the token revealed that the asset’s rise had little lasting impact on the overall cryptocurrency market.

The TRUMP token, part of the growing trend of memecoins, quickly captured the interest of traders and enthusiasts alike. This attention was reflected in a rapid market cap increase, signaling the power of media-driven cryptocurrency assets. However, experts in the Web3 space pointed out that while the token brought hundreds of thousands of new users to the market, the influx of new capital was minimal. Despite the impressive numbers surrounding the memecoin's launch, the total crypto market cap has largely remained unchanged, hovering around $3.5 trillion.

The most significant development in terms of market activity was a shift in liquidity. TRUMP’s rise coincided with a notable movement of funds into Solana's ecosystem. As a result, the liquidity that the memecoin generated did not translate into substantial new capital entering the crypto space. Instead, existing funds were merely redistributed within the market, with Solana benefiting from the shift. This illustrates a key point: while the memecoin garnered attention, it did not manage to bring a substantial volume of new investment into the broader crypto sector.

Despite its media success, TRUMP’s impact omains relatively unchangn the crypto market has been less transformative than initially expected. The market reed in terms of total capitalization, and the liquidity shift into specific ecosystems rather than new investor engagement points to the limitations of hype-driven assets in the crypto space.

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