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Market Update: Trump Memecoin Frenzy Drives Demand for Solana Tokens
Top-performing XRP (XRP) and Ethereum’s ETH witnessed profit-taking early Saturday as a Donald Trump-themed “official” memecoin attracted $3 billion in its first few hours after being issued on the Solana network, driving demand for SOL tokens.
Price Action in Major Cryptocurrencies Remains Muted
Price-action in bitcoin (BTC) and most major coins, such as dogecoin (DOGE) and BNB Chain’s BNB, remained muted as the TRUMP token shifted sentiment for XRP and ETH. Traders perceived the Trump memecoin’s choice of issuing the token on Solana as bearish for Ethereum.
“Official” Memecoin Linked to Trump Issued on Solana Network
An “official” memecoin linked to Trump was issued in early Asian hours Saturday from his verified X and Truth Social accounts. Prices ran from a few cents to $14 in less than six hours amid widespread confusion on whether the token was backed by Trump, as reported.
Some Fund Managers View the Move as Bullish for Memecoins
Some fund managers consider the move to be bullish for memecoins: “The incoming President just gave everyone license to launch a memecoin – $SOL is getting the message, buckle up,” Placeholder VC partner Chris Burniske wrote on X.
XRP Slumps as Demand Surges
XRP slumped as much as 5% to pare gains from a 40% gain over the past 7 days. Demand for XRP has surged since early November when Republican Trump won the U.S. presidential elections and promised to make the country a hotbed for local crypto businesses — improving sentiment for tokens linked to U.S. companies (XRP is closely related to New York-based Ripple Labs.)
Speculation Surrounds Trump’s Stance on Cryptocurrencies
XRP broke the $3 mark for the first time since 2018 on Friday ahead of Trump’s inauguration on Jan. 20. The speculative move came on unconfirmed reports that Trump was open to an “America-first strategic reserve that would prioritize digital coins founded in the U.S., like Solana, USD Coin and Ripple.”
Talks of Strategic Reserve Have Only Included Bitcoin Holdings
Talks of any strategic reserve have so far only included plans for bitcoin holdings.
Ripple CEO Meets with Trump, Fueling Speculation
Ripple CEO Brad Garlinghouse had at least one meeting with the President-elect in early January, bumping speculation that Ripple could potentially have a direct channel to influence the incoming administration, causing heightened interest in XRP.
Conclusion
The market is in a state of frenzy as the Trump memecoin’s sudden launch has driven demand for Solana tokens, while major cryptocurrencies like bitcoin and Ethereum’s ETH remain relatively calm. The move has sparked speculation about Trump’s stance on cryptocurrencies, with some fund managers viewing the development as bullish for memecoins. As the market continues to evolve, it remains to be seen whether this latest development will have a lasting impact on the global cryptocurrency landscape.
FAQs
Q: What is the Trump memecoin?
A: The Trump memecoin is a cryptocurrency issued on the Solana network, linked to Donald Trump.
Q: What is Solana?
A: Solana is a blockchain platform that enables fast and cheap transactions.
Q: What is the purpose of the Trump memecoin?
A: The purpose of the memecoin is unknown, with some speculating that it may be used to promote Trump’s brand or as a store of value.
Q: How did the market react to the Trump memecoin’s launch?
A: The market reacted positively, with prices surging from a few cents to $14 in less than six hours.
Q: What impact will this have on the global cryptocurrency market?
A: The impact is still unknown, but some speculate that it may lead to increased interest in memecoins and Solana.
