Trump's Crypto Bubble Bursts: Meme Coin Plunges 64%

Trump's Crypto Bubble: A Tale of Rapid Rise and Fall

The meteoric rise and subsequent decline of President Trump's Solana meme coin, TRUMP, has sparked intense debate within the crypto community. After a massive trading spree following its launch, the coin's recent decline raises questions about sustainability and investor sentiment.

Blockchain analytics firm Chainalysis reported that around 50% of current TRUMP holders are new retail investors, indicating a fresh demographic entering the market. However, the coin's drastic trading volume drops post-launch have left investors questioning its future in the crypto landscape.

Following a meteoric rise to a market capitalization of $14.5 billion shortly after launch, TRUMP has recently experienced significant declines in both trading volume and price. As of now, the price stands at $26.80, marking a staggering 64% decrease from its all-time high. Simultaneously, daily trading volume plummeted by 90% from initial figures, witnessing a drop from $36 billion during the inauguration hype to just $3.5 billion recently.

The introduction of other meme coins, particularly the one linked to First Lady Melania Trump, seems to have significantly affected TRUMP’s price dynamics. Analysts suggest that the immediate competition has downgraded early investor enthusiasm. Moreover, the activity of 691,300 unique TRUMP holders on-chain, a decrease from 900,000 on launch, reflects a potential shift in market confidence. Many individuals appear to be liquidating their positions as the initial euphoria diminishes.

Data from Chainalysis indicates that a notable portion of the TRUMP holder base are new retail investors who had previously not engaged with Solana-based altcoins. This discovery suggests that the rise of TRUMP may have engaged untapped retail markets, with about 46% of wallets created the day of purchase. Such demographics could signify either a fleeting interest in speculative investments or the potential for long-term engagement should fundamentals improve.

Despite the decline, there remains a resilient support base for the TRUMP token. Engaged users on platforms like Truth Social express optimism, characterizing the meme coin’s journey as historic rather than merely a speculative bubble. With the token gaining a semblance of utility as an accepted payment method for official merchandise on sites like Get