Despite the initial excitement around the launch of the TRUMP memecoin, it has struggled to generate lasting fresh capital for the broader crypto market, according to Garrison Yang, co-founder of Mirai Labs. While the token surged to over $10 billion in market cap on its first day, it has since dropped to about $5.3 billion, showing that the enthusiasm around it didn’t lead to significant market growth.
The overall cryptocurrency market cap has remained relatively stable, fluctuating around $3.5 trillion, with little movement despite the attention surrounding the TRUMP token. Yang pointed out that while the TRUMP token drew in a large number of users and media attention, the actual influx of new investment was limited.
“When you look closely at the liquidity, it seems that much of the funds circulating in the TRUMP token came from existing capital being reallocated, rather than new money entering the space,” Yang explained. He noted that the liquidity from the TRUMP token mostly flowed into Solana’s ecosystem, highlighting how much of the market’s recent movement was just a re-distribution of existing funds.
Furthermore, research from Chainalysis showed that about 50% of TRUMP and MELANIA token holders were likely first-time Solana-based token buyers. However, Yang emphasized that this was not necessarily a sign of new capital entering the market, but rather an example of how the market’s liquidity was shifting within the Solana ecosystem.
