Trump memecoin launch has little impact on crypto market
The tokens price has dropped by 7.5% to $27
More than a week after the launch of the Official TRUMP memecoin, analysts continue to evaluate the impact of the "presidential token" on the cryptocurrency market.
Despite the phenomenal growth of Official TRUMP— reaching a market capitalization of $14.5 billion within less than a day of its launch, accompanied by reports of 400,000 new entrants to the crypto market—current data indicates that the token's debut has had minimal effect on the overall crypto market capitalization.
TRUMP market cap versus total crypto market cap. Source: TradingView/CoinDesk
Distribution and whale activity
According to Chainalysis data, after the issuance of 1 billion TRUMP tokens, four wallets received the majority of the funds for storage or providing liquidity to exchanges.As of January 22, around 40 "whales" held TRUMP tokens worth more than $10 million, while 80% of TRUMP holders had wallets containing tokens valued at less than $100.
Confusion over new users
Reports about new market participants have added some confusion. It turns out that many individuals who purchased TRUMP tokens for the first time had previously owned stablecoins or Solana tokens but had not held Solana-based tokens specifically.
"When it comes to actual liquidity and capital entering the token, only a small fraction (in value terms) came from new participants. Unfortunately, we mostly witnessed the movement of hot money," said Harrison Yang, founder of Web3 gaming studio Mirai Labs.
Decline in token holders and value
According to Dune Analytics, the number of TRUMP token holders has decreased significantly, with most investors either breaking even or incurring losses of up to $1,000.
TRUMP price dynamics January 27. Source: CoinMarketCap
Over the past 24 hours, the token’s price has dropped by 7.5% to $27 at the time of writing. TRUMP's current market capitalization stands at over $5.4 billion, with its fully diluted valuation—considering tokens locked in vesting—approaching $27 billion.
As we wrote, although the Official TRUMP meme coin has grown over 350% since its launch, this was not enough to maintain its position among the top three meme coins by market capitalization.
