Donald Trump Memecoin Surges to $13.5 Billion Market Cap, Secures Spot in Top 20
The crypto space has witnessed an extraordinary surge with President-elect Donald Trump's memecoin just called TRUMP, now boasting an impressive market value of $13.5 billion. This meteoric rise has seen the coin break into the top 20 global cryptocurrencies, marking a significant milestone in just two days since launch.
At its peak so far, the TRUMP memecoin has reached a value of $67 per token, reflecting a total market value of $13.5 billion, and a fully diluted valuation of $67.5 billion. This rally has been bolstered by strategic listings on major exchanges. Binance, one of the world's leading centralized exchanges, has already included the memecoin in its offerings, while Coinbase has placed it on its roadmap to be added soon. Kraken has also listed as well as others. Additionally, the decentralized exchange Hyperliquid has added the token to its platform, further facilitating its reach and accessibility to investors.
The Road Ahead for TRUMP Coin
Despite the positive market response, there are concerns regarding the sustainability of this price surge. The token's fully diluted valuation is notably higher than its current market cap, largely due to the substantial portion of tokens reserved for insiders. In just three months, 80% of the total supply will begin to unlock, starting with 40 million tokens worth approximately $2.7 billion at current prices. This influx could potentially lead to significant selling pressure, which might challenge the token's ability to maintain its current valuation or even keep it stable.
Moreover, the Trump team has been actively managing the proceeds from these sales, converting them into other assets within the crypto ecosystem. Onchain data reveals that they have spent around $5 million in USDC to purchase wrapped Solana tokens across decentralized exchanges like Jupiter, Orca, and SolFi. This move not only diversifies their holdings but also supports the Solana blockchain, on which the TRUMP token operates.
The introduction of the official Trump memecoin has undeniably sparked interest among those new to cryptocurrency. Reports from Moonshot indicate that approximately 400,000 new accounts have been created solely to invest in this token since its launch just over a day ago. This influx of new users underscores the memecoin's role in expanding the crypto community. However, the volatile nature of memecoins suggests that a downturn could swiftly change the narrative, potentially leading to rapid disillusionment among new investors if the price fails to hold or begins to plummet.
As the crypto market watches closely, the performance of TRUMP will be a litmus test for the resilience and appeal of memecoins tied to high-profile political figures, and could even mark a pivital change in the crypto space during the Trump administration.