Trump Family's ‘Official’ Meme Coins Sparks Market Buzz

The Meteoric Rise of TRUMP

TRUMP’s launch sent shockwaves through the crypto market, with its fully diluted valuation (FDV) surging to $9 billion within three hours. By press time, the FDV had climbed to $20.4 billion, with the token reaching a peak price of $24.39. The current market capitalization stands at approximately $4.1 billion. 

Notably, a trader who invested $1 million in TRUMP shortly after its release saw the value balloon to $90 million, earning $3.65 million through partial sales. High-frequency trading strategies played a pivotal role in this meteoric rise, including an $85,000 tip paid to Jito, a Solana infrastructure provider, to prioritize transactions.

However, the surge has not been without scrutiny. On-chain analysts identified suspicious patterns in fund movements, including significant inflows from Binance and Gate.io—exchanges that do not cater to U.S. consumers—raising questions about the origins of some investments.

Polarized Reactions and Market Volatility

The launch ignited intense debate within the crypto community. While Trump’s announcement was initially met with skepticism—prompting rumors of a hacked account—his team confirmed the launch’s authenticity. Despite this, critics like crypto trader Edward Morra warned of potential market fallout, saying, “This will end badly…leading to a general market sell-off going into the inauguration.” Others mocked the initiative with claims that Trump’s son, Barron, was behind the launch, jokingly attributing the event to a prank.

The broader market felt the ripple effects of TRUMP’s debut. Solana’s price rose by 4.12% to $228, while other Trump-inspired meme coins experienced a brief spike before dropping 20-50% amid heightened volatility. The TRUMP token saw a 24% decline following its initial surge, and MAGA tokens fell by 23%.

Record-Breaking Launches Disrupt Solana Ecosystem

The launch of Trump and Melania tokens ignited a whirlwind in the crypto market, sending ripples through Solana’s ecosystem. Introduced on January 18 and 19, 2025, respectively, these tokens skyrocketed in market cap shortly after release. TRUMP token reached a staggering $15 billion valuation before plummeting 38% to $10.8 billion within hours of MELANIA’s debut. MELANIA, in turn, carved its own path, amassing a $6.14 billion market cap within 48 hours, with over 45,000 wallets holding the token. 

The surge in popularity of Donald Trump's memecoin ahead of his inauguration resulted in a remarkable increase in new Solana addresses, reaching nearly 9 million daily, according to Copper.co. 

While the launch garnered significant retail enthusiasm, it also drew skepticism from analysts, with Conor Grogan of Coinbase describing MELANIA's execution as amateur compared to TRUMP’s more polished approach. Despite the buzz, one whale walked away with $47.5 million in profit reported, underscoring the lucrative but volatile nature of memecoin trading.

The impact of these tokens extended beyond their initial hype. Solana’s Total Value Locked (TVL) surged to an all-time high of $12 billion, reflecting a 46% increase within 30 days. Daily trading volumes across Solana’s decentralized exchanges (DEXs) soared to $27 billion, equivalent to 10% of Nasdaq’s trading volume. 

Phantom Wallet alone processed $1.25 billion in token swaps over a single weekend, handling an astonishing 10 million transactions in 24 hours despite delays caused by network congestion. Meteora, another Solana-based DEX, saw its TVL skyrocket by 300% in a week to $1.9 billion, with TRUMP and MELANIA tokens accounting for 38% of its liquidity.

Solana validators garnered over 100,000 SOL in fees amid the TRUMP token launch, with peak trading activities surpassing 87,000 SOL in a single day.

Meanwhile, DeFi platforms grappled with unprecedented activity. Hyperliquid, a decentralized perpetuals exchange, logged $21 billion in daily trading volume following the token launches, generating $9.5 million in fees. A trader described the frenzy as a “live stress test for DeFi systems,” showcasing how decentralized platforms could rival traditional exchanges in speed and transparency. Despite occasional congestion, Solana’s network handled the surge without downtime, demonstrating its resilience under pressure.

Due to significant increases in Solana activity, Coinbase also faced significant backlash over extended delays in processing Solana (SOL) transactions, with users reporting waits exceeding 14 hours, raising liquidity concerns. Allegations suggest that Coinbase may be staking customers’ SOL without their consent, causing delays related to unstaking processes. 

This situation has raised demands for immediate Proof of Reserves audits amidst skepticism following the FTX collapse. In response, Coinbase CEO Brian Armstrong apologized and stated that the exchange is working to scale up.

Retail investor participation reached fever pitch, fueled by FOMO and celebrity endorsement. Search trends for Solana and memecoins spiked globally, signaling a shift in market sentiment. However, blockchain data revealed troubling centralization: 90% of MELANIA tokens were reportedly held in a single wallet, raising concerns about manipulation. Critics also pointed to the Melania token’s poorly developed website and lack of security features, with blockchain engineer Cygaar branding it “a potential grift.”

The broader market reacted with a mix of enthusiasm and caution. Analysts suggested that the memecoin frenzy might spark a new “altcoin season,” as smaller cryptocurrencies gained traction among retail investors seeking high-risk, high-reward opportunities. Ki Young Ju, CEO of CryptoQuant, likened the trend to the initial coin offering (ICO) craze, predicting another wave of speculative activity. 

Despite the warnings, industry figures acknowledged the potential for celebrity-driven tokens to integrate into mainstream finance, with blockchain expert Anndy Lian stating, “This isn’t just another token launch; it’s a pivotal moment for the market.”