Trump Tokens Plunge 60% Following Inauguration, Investors Left with Losses
A burst of excitement surrounding TRUMP and MELANIA tokens quickly turned into heavy losses for investors as the tokens plummeted by up to 60% in the past 24 hours. The sharp declines followed significant profit-taking after President Trump’s inauguration on Monday.
Futures contracts linked to the tokens also saw massive liquidations, with nearly $70 million wiped out for traders who had bet on further price increases.
Trading Volumes Reflect Initial Hype
Despite the crash, both tokens saw exceptionally high trading volumes. TRUMP registered over $19 billion in trading volume over a 24-hour period, while MELANIA saw $4.5 billion in trades. By comparison, leading cryptocurrencies like Tron (TRX) and Cardano (ADA) saw trading volumes under $4 billion, demonstrating the massive interest in the Trump-themed assets.
However, after the dramatic drop, trading volumes have significantly slowed. According to data from the Moonshot platform, which was among the first to list TRUMP, volumes have fallen from an average of over $6 million on January 18-19 to just above $1 million in the last 24 hours, based on a Dune Analytics dashboard by @Seoulcalibur.eth.
No Crypto Mentions in Trump’s Speech Raises Doubts
Crypto markets were also rattled by Trump’s inauguration speech, which did not include any mention of cryptocurrency, leaving traders hoping for policies like a strategic bitcoin reserve disappointed. The absence of such announcements led Bitcoin (BTC) to fall from a peak of $109,000 to around $101,000 by Tuesday morning in Asia.
Solana’s Outlook Remains Positive Despite the Setbacks
Despite the volatility surrounding the Trump tokens, there is still a sense of optimism about Solana (SOL), the blockchain that hosted the TRUMP token launch. Analysts believe the launch could have positive long-term implications for Solana’s future.
“Launching $TRUMP on Solana is a major endorsement for the network and could help accelerate the approval of a Solana-based ETF,” said QCP Capital, a Singapore-based trading firm, in a report. “Given the media exposure, we expect retail traders to flood into Solana, bringing more liquidity into the ecosystem.”
The firm also noted, “The memecoin launch sends a clear message about Trump’s pro-crypto stance, which is appealing not just to retail investors but also to institutional players. Many institutions are eagerly awaiting concrete policies that could further shape the crypto market’s future.”
Short-Term Declines, Long-Term Possibilities
While the rapid crash of the Trump memecoins signals a short-term setback, the broader crypto market remains optimistic about future developments. Investors are still hopeful that Trump’s pro-crypto policies will materialize, and that this will eventually pave the way for greater institutional adoption and market growth in the cryptocurrency space.
