18.01.2025
Oleg Tkachenko
Author and expert at Traders Union
18.01.2025

Trump memecoin spurs SOL rally, XRP and ETH face decline

Trump memecoin spurs SOL rally, XRP and ETH face decline Trump memecoin spurs SOL rally

​The launch of the Trump memecoin has created significant ripples in the cryptocurrency market. The issuance of the token on the Solana network has sparked a surge in demand for Solana’s native token, SOL, driving its price up by 9%. 

SOL price is now at $236.38, which also reflects an uptick of 26.90% in the last 7 days and an increase of 12.39% in the last 1 month. The 24-hour trading volume has jumped by 57.02%, with an increase of 11.19% in the market cap, reports CoinDesk.

An “official” memecoin associated with Donald Trump was issued early Saturday during Asian trading hours, promoted through his verified X and Truth Social accounts. The token's price skyrocketed from just a few cents to $14 within six hours, fueled by widespread speculation and uncertainty about whether the coin had Trump’s official backing.

Some fund managers see this development as a bullish signal for the memecoin market. “The incoming President just gave everyone license to launch a memecoin — $SOL is getting the message, buckle up,” wrote Placeholder VC partner Chris Burniske on X.

Meanwhile, XRP and Ethereum saw their prices fall by 3.5% and 2.8%, respectively. This downturn may indicate a reallocation of investor focus and capital toward more speculative and emerging assets like TRUMP token.

Market experts believe that such volatility underscores the impact of sentiment-driven assets on the broader cryptocurrency ecosystem.

XRP faces setback after recent gains

XRP experienced a decline of up to 5%, trimming its recent 40% rally from the past week. Interest in XRP has significantly increased since early November, following Republican Donald Trump’s win in the U.S. presidential elections. His pledge to establish the U.S. as a leading hub for crypto businesses has fueled optimism around tokens linked to American firms, including XRP, which is closely tied to Ripple Labs, based in New York.

For the first time since 2018, XRP surpassed the $3 mark on Friday, ahead of Trump’s inauguration scheduled for January 20. The price surge was reportedly driven by speculation that Trump may consider creating an “America-first strategic reserve” to prioritize digital assets originating in the U.S., such as Solana, USD Coin, and Ripple.

Despite the rumors, official discussions about the strategic reserve have only referenced Bitcoin, leaving the inclusion of other cryptocurrencies unconfirmed.

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