"TRUMP Coin's Billion-Dollar Hype Fails to Translate into New Capital"

The TRUMP Coin, a memecoin that gained significant market popularity, has not managed to attract a large influx of new funds, according to insights from industry experts. Despite its valuation reaching several billion dollars, the overall cryptocurrency market capitalization has remained relatively stable. The Phantom app, which once dominated download rankings, captured widespread attention but did not significantly translate into liquidity or capital inflow for the token.

Garrison Yang, co-founder of the Web3 gaming company Mirai Labs, noted that while the TRUMP token brought considerable attention to the crypto market, it struggled to onboard substantial new capital. The memecoin launched with significant impact last week, reaching a market cap of over $10 billion on its first day, but has since dropped to approximately $5.3 billion at the time of writing. Meanwhile, the total market cap of all cryptocurrencies has fluctuated around $3.5 trillion.

Yang emphasized that only a minimal fraction of the token’s value derives from new investors, suggesting a disconnect between popularity metrics and substantial financial engagement. Research by Chainalysis last week showed that roughly 50% of TRUMP and MELANIA token holders were likely first-time Solana-based token buyers, indicating that the token's popularity may not be translating into significant new investment.

This commentary underscores the challenges within the crypto sector, where market hype does not always correlate with genuine investment momentum. As the industry continues to evolve, distinguishing between fleeting trends and sustainable growth will be crucial for stakeholders navigating this volatile environment.