In a dramatic turn of events, the much-hyped TRUMP and MELANIA tokens have plummeted over 50% in value just 24 hours after the inauguration of crypto-friendly President Donald Trump. Despite the president’s perceived bullish stance on digital assets, eager traders appear to be taking profits en masse, sending prices of the Trump family meme coins into a tailspin.
Meteoric Rise Meets Harsh Reality
The TRUMP token, which amassed a staggering $19 billion in trading volume over the past day alone, has seen its value slashed by more than half. Its companion coin MELANIA fared no better, shedding over 60% after $4.5 billion worth changed hands. For context, these volumes dwarf those of major tokens like Tron’s TRX and Cardano’s ADA over the same period.
Clearly, the Trump name carries immense weight in the crypto markets. But as is often the case with such meteoric rises, what goes up must eventually come down. Overeager buyers are now feeling the sting as a post-inauguration sell-off takes hold.
$70M in Liquidations as Futures Traders Get Burned
It’s not just spot prices taking a beating. Futures traders who bet big on TRUMP and MELANIA continuing their surge are now facing the music to the tune of $70 million in liquidations. The majority of these blown-out positions were on the long side, indicating the market was heavily skewed toward further upside that has yet to materialize.
Crypto markets expected Trump to mention the asset class in his inaugural speech — such as plans of a promised strategic bitcoin reserve — but the lack of relevant words saw BTC fall from a Monday high above $109,000 to just over $101,000 in Asian morning hours Monday.
Volumes Vanish as Reality Sets In
As prices plummet, so too does trading activity. Data from the Dune analytics platform shows TRUMP’s trading volume on the Moonshot app, where retail investors flocked to access the token, has dwindled from a peak above $6 million to just over $1 million. It seems the FOMO crowd has all but disappeared as losses mount.
All Eyes on SOL as Trump Cements Pro-Crypto Stance
Amid the sea of red, there may yet be a silver lining for crypto markets. Singapore-based trading firm QCP Capital sees the launch of TRUMP on Solana as a major endorsement of the SOL blockchain, strengthening the case for a coveted SOL ETF approval.
“Launching $TRUMP on SOL proves to be a significant endorsement of the chain, making it plausible that the SOL ETF could gain approval much earlier than expected,” the firm noted. “With increased media exposure from similar launches, retail inflows will likely come streaming in.”
The Trump administration’s vocal support for the crypto industry is seen as a potential game changer in terms of institutional adoption. As QCP explains:
“The launch of Trump’s memecoin appeals not only to the retail memecoin moonshot masses, but also to major institutions as it solidifies the president’s pro-crypto stance. Institutional investors are on the edge of their seats, awaiting concrete pro-crypto policies that could significantly influence the future of the economy.
The Bigger Picture for Crypto
While the short-term pain for TRUMP and MELANIA holders is undeniable, the longer-term implications of a crypto-supportive US president can’t be ignored. With the potential for favorable regulations, institutional investment, and even a Bitcoin strategic reserve on the table, many see this as just a temporary setback in an otherwise bullish climate for digital assets.
As always in the volatile world of crypto, one must be prepared to weather sudden storms in pursuit of the larger vision. For those who believe in the transformative power of blockchain technology and decentralized finance, a 50% pullback in a meme coin is but a blip on the radar. The true test will be how the market responds when the lofty promises of a pro-crypto administration start turning into concrete action.
- TRUMP and MELANIA tokens plummet >50% as traders take profits
- Trading volumes evaporate as meme coin hype fizzles post-inauguration
- But pro-crypto administration keeps markets optimistic on big picture
- All eyes on potential SOL ETF approval as Solana gains prominence
