In a plot twist that’s shaking up the crypto scene, the newly launched MELANIA token has surged a staggering 24,000% to $13 while the much-hyped TRUMP coin has tanked 30% from its weekend high. The memecoin mania has even caused Bitcoin to briefly dip below the key $100,000 level, sparking speculation of a broader market pullback.
MELANIA Token Takes Center Stage
The crypto community was caught off guard on Sunday when Melania Trump herself announced the launch of her official memecoin, $MELANIA, on the social media platform X (formerly Twitter). Built on the Solana blockchain, the MELANIA token quickly captured the spotlight, rallying from mere cents to double-digit prices.
The Official Melania Meme is live! You can buy $MELANIA now.
Melania Trump on X
TRUMP Token Tumbles as Liquidity Shifts
The sudden rise of MELANIA appears to have sucked liquidity out of the TRUMP token, which debuted just a day earlier to much fanfare. TRUMP, the memecoin backed by President-elect Donald Trump, plunged 30% from its weekend highs to around $49 as traders rotated funds into the shiny new MELANIA token.
The head-spinning action in these two memecoins drove wild volatility in the broader crypto market. Bitcoin, the largest cryptocurrency by market cap, briefly dipped below the closely watched $100,000 support level, though it managed to recover some ground in subsequent hours.
Memecoin Mania: Healthy Exuberance or Looming Correction?
The frenetic trading in TRUMP and MELANIA has divided crypto pundits. Some, like Jeff Dorman, CIO of digital asset investment firm Arca, see the Trump family’s foray into memecoins as a bullish sign for the space overall.
TRUMP token just signaled to every company, municipality, university & individual brand that crypto can now be used as a capital formation and customer bootstrapping mechanism.
Jeff Dorman on X
However, others caution that the speculative frenzy around these tokens may indicate an overheated market ripe for a correction. The action has been particularly concerning to some Bitcoin bulls, who worry that capital flowing into fly-by-night memecoins could sap momentum from the pioneering cryptocurrency.
All Eyes on Trump’s Crypto Stance
As the crypto world grapples with the market-moving potential of Trump-affiliated tokens, attention is turning to how the President-elect himself will approach digital assets once in office. Expectations are mounting that Trump may signal his crypto-friendly stance by announcing a strategic Bitcoin reserve on his first day in the White House.
Regardless of Trump’s exact policies, it’s clear that his surprise ascendance to the Oval Office, along with his family’s plunge into crypto, is ushering in a new era for the industry. Buckle up, because the memecoin rollercoaster shows no signs of slowing down.
