Analysis of the TRUMP Token’s Market Impact
While the TRUMP token captured significant attention in the cryptocurrency landscape, it faced challenges in attracting substantial new investment. This observation stems from a comparative analysis of TRUMP’s market capitalization against the broader value of the crypto market. The memecoin made a notable debut last week, achieving a market cap exceeding $10 billion on its inaugural day. However, it has since seen a decline, currently hovering around $5.3 billion at the time of this writing. In contrast, the total market capitalization for all cryptocurrencies has remained relatively stable, fluctuating around $3.5 trillion, as reported by sources such as TradingView and CoinDesk.
Garrison Yang, co-founder of the prominent international Web3 gaming studio Mirai Labs, shared insights via email, stating, “While $TRUMP is now valued in the billions, the overall crypto market cap has hardly shifted. Although it generated headlines by onboarding 400,000 users, and Phantom briefly became the leading app, it seems the entire world was momentarily captivated by this token. What we actually managed to do was draw in a lot of attention.”
Yang further elaborated, “In terms of genuine liquidity and the actual capital that flowed into the token, very little of it—on a value basis—originated from new participants. Unfortunately, it appears we merely shuffled existing funds around. This phenomenon is particularly evident on-chain with altcoins in the Solana ecosystem, where a substantial amount of liquidity was swiftly redirected.”
Furthermore, research conducted by Chainalysis last week indicated that approximately 50% of TRUMP and MELANIA token holders were likely first-time buyers of Solana-based tokens, hinting at a potential shift in the market dynamics.
TRUMP market cap versus total crypto market cap. (Data Source: TradingView/CoinDesk)
