The TRUMP token generated significant buzz in the crypto world after its launch, but it has failed to attract meaningful new investments. This insight comes from an analysis comparing TRUMP’s market capitalization with the overall value of the cryptocurrency market.
Initial Impact and Market Cap Fluctuations
The TRUMP memecoin made a striking entrance last week, achieving a market cap exceeding $10 billion on its debut day. However, this impressive figure has since diminished, settling at around $5.3 billion at the time of this report. In contrast, the total market cap of all cryptocurrencies has remained relatively stable, hovering around $3.5 trillion, according to data from TradingView and CoinDesk.
Garrison Yang, co-founder of the international Web3 gaming studio Mirai Labs, shared his thoughts on this phenomenon. He noted that despite TRUMP’s valuation reaching billions, the overall crypto market cap has experienced minimal movement. “While it’s an exciting headline to report that 400,000 users were onboarded, the reality is that we primarily attracted attention rather than actual investment,” Yang explained in an email statement.
Onboarding Attention vs. Real Investment
Yang emphasized that although TRUMP saw a significant influx of users, the actual liquidity and capital entering the token were largely from existing investors rather than new ones. “Unfortunately, we just ended up shifting existing capital around,” he added. This trend is particularly evident on-chain, especially with alternative tokens on the Solana blockchain, where liquidity has rapidly funneled into the Solana ecosystem.
Newcomers to Solana’s Token Market
Research conducted by Chainalysis last week revealed that approximately 50% of TRUMP and MELANIA token holders were likely first-time buyers of Solana-based tokens. This statistic highlights a growing interest in the Solana platform, although it also underscores the limited impact of TRUMP on attracting fresh capital to the broader crypto market.
In summary, while the TRUMP memecoin has captured the spotlight, its effect on the overall crypto market has been limited, raising questions about the sustainability of such hype-driven tokens in the long run.
