Donald Trump’s Memecoin Boosts Solana’s Price and Trading Volume
The launch of Donald Trump’s official memecoin, $TRUMP, has led to a surge in both the price and trading volume of Solana (SOL), the blockchain network on which the memecoin is built. As a result, the total value locked (TVL) on the network has topped $10 billion for the first time since the collapse of FTX.
Price and Trading Volume Surge
The announcement of the memecoin’s launch helped SOL rise more than 23% in price, reaching a new all-time high. The trading volume on Solana’s decentralized exchanges (DEXs) also increased significantly, with DeFiLlama showing that Raydium surpassed Tether in 24-hour fee generation.
Total Value Locked Reaches $10 Billion
Data from DeFiLlama shows that the TVL on Solana is now at $12 billion, a new all-time high. Measured in SOL, the value locked on the network has been steadily growing since the beginning of last year and recently topped 45 million SOL. This level hasn’t been seen since August 2022, ahead of the collapse of FTX.
Moonshot Trading Platform Reports Strong Trading Volume
Moonshot, the memecoin trading platform featured on the memecoin’s website, reported a 12-hour trading volume of nearly $400 million after the memecoin launched. The platform also onboarded over 200,000 users onto the network in the process.
Perceived Odds of Solana ETF Launch Increase
The network choice also helped boost the perceived odds of a spot Solana exchange-traded fund (ETF) being launched in the first half of the year. Polymarket traders went from weighing a 43% chance such a product would be launched by July 31 to 61%.
Solana’s Robustness Tested
The trading frenzy came during the weekend, when trading volumes are typically muted as many institutional investors and professional traders are less active. This means that speculative activity on the network could well continue during the week. Beyond that, the memecoin’s launch is bringing Solana an influx of new users and presents the network with an opportunity to showcase its robustness. If it withstands the test, the Solana ecosystem could keep on seeing significant inflows.
US Fintech Policy Shift
The introduction of Trump’s token also signals a “change in US fintech policy towards much more permissive innovation,” according to crypto OG and Shapeshifter founder Erik Voorhees.
Conclusion
The launch of Donald Trump’s memecoin has had a significant impact on the Solana network, leading to a surge in price and trading volume. The total value locked on the network has reached $10 billion for the first time since the collapse of FTX, and the perceived odds of a Solana ETF launch have increased. As the network continues to grow and attract new users, it remains to be seen how it will perform under increased scrutiny.
FAQs
Q: What is the memecoin launched by Donald Trump?
A: The memecoin is called $TRUMP and is built on the Solana blockchain network.
Q: How much did the price of SOL rise after the memecoin’s launch?
A: The price of SOL rose more than 23% after the memecoin’s launch, reaching a new all-time high.
Q: What is the total value locked on the Solana network?
A: The total value locked on the Solana network is currently at $12 billion, a new all-time high.
Q: What is the perceived odds of a Solana ETF launch?
A: The perceived odds of a Solana ETF launch have increased to 61% after the memecoin’s launch.
Q: How much trading volume did Moonshot report?
A: Moonshot reported a 12-hour trading volume of nearly $400 million after the memecoin’s launch.
Q: What is the significance of the memecoin’s launch for Solana?
A: The memecoin’s launch presents Solana with an opportunity to showcase its robustness and attract new users to the network.
