Trump’s Memecoin Launch Propels Solana Price Surge and Fuels Speculation Over Solana ETF
The official launch of Donald Trump’s memecoin on the Solana blockchain has caused a major surge in Solana’s price and trading volume, while also igniting renewed speculation about the potential approval of a Solana exchange-traded fund (ETF).
Trump’s $TRUMP memecoin, branded as his “official” memecoin, has generated massive interest in Solana, pushing SOL to new all-time highs. The launch has also resulted in a significant rise in the total value locked (TVL) on the network, which has surpassed $10 billion for the first time since the FTX collapse. DeFiLlama data shows that Solana’s TVL has now hit a new record of $12 billion, signaling a surge of investor confidence in the network.
Since Trump’s announcement, SOL has risen by more than 23%, reaching unprecedented levels. The value locked in Solana’s smart contracts has grown steadily, with the amount of SOL locked now surpassing 45 million SOL, a level not seen since August 2022, prior to the FTX crash. At the time, FTX’s Sam Bankman-Fried had been one of Solana’s biggest proponents, and the collapse had a significant impact on Solana’s market sentiment.
Launch of the TRUMP Token and Its Effects
The $TRUMP memecoin was launched by CIC Digital LLC, a Trump-affiliated entity, in collaboration with Fight Fight Fight LLC. These two companies control 80% of the total supply of the token, which is scheduled to be released over the next three years. The memecoin has quickly gained traction, becoming the third-largest memecoin by market capitalization, following Dogecoin (DOGE) and Shiba Inu (SHIB).
The token’s launch has led to a surge in activity on Solana’s decentralized exchanges. According to DeFiLlama, Raydium, a key decentralized exchange on Solana, surpassed Tether (USDT) in 24-hour fee generation. Additionally, Moonshot, a trading platform promoted by Trump on social media, saw nearly $400 million in trading volume within 12 hours of the memecoin’s release and onboarded more than 200,000 new users to Solana.
Speculation Around Solana ETF Intensifies
The excitement surrounding Trump’s memecoin has also bolstered hopes for the approval of a Solana-based ETF. Polymarket traders have raised their probability of a Solana ETF launching by July 31 from 43% to 61%, reflecting growing optimism about Solana’s potential. This change in sentiment is largely driven by the increased market activity and positive outlook on Solana’s future.
Weekend Surge Fuels Ongoing Speculation
The trading spike occurred over the weekend, a typically quiet period for institutional traders. This means the speculative momentum is likely to continue into the week, providing additional support for Solana’s growth prospects.
Solana Faces Crucial Test of Network Stability
With the influx of new users drawn by Trump’s memecoin, Solana has a unique opportunity to showcase its ability to handle increased traffic. The blockchain has faced several major outages in the past, and this surge in activity will serve as a crucial stress test. If Solana can maintain stability under this load, it could continue to attract new users and investors.
Implications for U.S. Crypto Regulation
The launch of Trump’s memecoin also signals a shift in the U.S. government’s stance toward the cryptocurrency space, providing Solana with additional legitimacy. By endorsing a Solana-based token, Trump’s actions could have a far-reaching impact on the regulatory landscape, potentially signaling a more favorable environment for crypto innovation.
Erik Voorhees, founder of Shapeshifter, commented that the release of the $TRUMP memecoin marks a “shift in U.S. fintech policy toward more permissive innovation.” This could open the door for further advancements in blockchain and cryptocurrency technology within the U.S., setting a precedent for more relaxed regulations and increased adoption.
