Sophia’s Thoughts On A New Memecoin Era
Donald Trump shook the crypto world this week with the launch of his $TRUMP meme coin, quickly followed by $MELANIA. Both sparked chaos, controversy, and speculation. What does this mean for crypto, meme coins, and the future of blockchain?
These are Sophia's Thoughts:
President Trump and First Lady Melania launched the $TRUMP and $MELANIA meme coins on the Solana blockchain, triggering massive market volatility and a mix of excitement and skepticism across the crypto space.
Solana’s successful handling of the unprecedented trading volume demonstrates its growing resilience, positioning it as a leading blockchain while sparking optimism for broader adoption and potential ETFs.
These launches highlight the disruptive power of celebrity-backed meme coins, raising questions about their speculative nature, risks, and potential to attract more public figures to the space.
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🚀 Last week’s market performance
The crypto market rallied into the U.S. presidential election on Monday, gaining 8.4%. Bitcoin (BTC) experienced a lot of volatility in the USD 100,000 range but ended the week up 7.9%. The best performing coin of the week was Raydium (RAY), which surged 58.5% off the fees and optimism generated from the release of the $TRUMP coin on the Solana blockchain. The worst performing coin this week was Fantom (FTM) which fell 23.5%.
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🤨 What happened?
The crypto world was thrown into chaos and excitement over the weekend as President Donald Trump and First Lady Melania Trump launched their respective meme coins on the Solana blockchain, $TRUMP and $MELANIA. The $TRUMP token, which was announced late Friday, skyrocketed to a USD 15 billion market cap at its peak but tumbled nearly 50% after the surprise launch of Melania’s $MELANIA token just 48 hours later. As of Tuesday the 21st, $TRUMP sits at a market cap of USD 8.3 billion, while $MELANIA has fallen to a tad over USD 800 million after peaking at an astonishing USD 2.2 billion.
Criticism came swiftly from both inside and outside the crypto community. Many questioned the ethical implications of the launches, as both coins heavily benefit Trump-affiliated entities like CIC Digital LLC, which owns 80% of the $TRUMP supply. The overlap in demand between the two coins led to sharp sell-offs, with traders unloading $TRUMP to buy $MELANIA, driving incredible volatility across the market.
Adding to the frenzy, Reverend Lorenzo Sewell who delivered the benediction at Trump’s inauguration, launched his own meme coin, Lorenzo. However, the preacher’s token quickly collapsed and lost 93% of its value within 24 hours, highlighting the speculative and often sentiment driven nature of meme coins.
While some see the launches as a mockery of an industry working hard to rebuild its credibility, others view them as a signal of the chaotic, yet crypto-friendly environment ushered in by Trump’s administration. Despite the controversies, the launches have reignited debates about the role of meme coins in the broader cryptocurrency ecosystem, particularly their speculative appeal and rollercoaster like price movements.
☀️Solana in the spotlight
The consecutive launches of $TRUMP and $MELANIA didn’t just dominate headlines—they subjected the Solana blockchain to the most intense real-world stress test in its history. With unprecedented levels of trading activity, Solana demonstrated both its resilience and its limitations.
The network’s co-founder Raj Gokan highlighted the historical significance of these events, noting that these are “all-time highs for any chain in history.”
Over the past two days, Gokal highlighted some of the Solana ecosystems staggering metrics on his X account:
Daily trading volume on Solana’s decentralized exchanges (DEXs) reached a record-breaking USD 39.2 billion on January 19, surpassing the previous high of USD 28.2 billion the day before – equivalent to nearly 10% of the Nasdaq’s daily trading volume.
Transaction fees consumed on the network hit a new peak of USD 56.5 million in daily “Real Economic Activity” (REV).
The frenzy of activity triggered by the $TRUMP and $MELANIA coin launches subjected Solana to an intense real-world stress test, marked by a spike in transaction delays and failures. However, Solana’s ability to handle this unprecedented volume of transactions has been a significant improvement from its past outages, reinforcing confidence in its scalability and robustness as a blockchain solution for future high-traffic demands.
This surge of activity helped Solana surpass the USD 260 resistance level for the first time in four years, reaching a new all-time high of USD 295. The meme coin launches brought an influx of new users, liquidity, and attention to Solana, which is now poised for continued growth and innovation within its ecosystem. Beyond the immediate price action, Solana’s successful handling of this stress test has strengthened its standing as a leading blockchain for real-world applications.
Adding to this optimism, market sentiment surrounding a potential Solana ETF has surged. Predictions for a 2025 approval reached a 92% probability, up 34% this month, according to Polymarket data. This increased confidence reflects broader recognition of Solana’s dominant role in the cryptocurrency ecosystem and the strides it has made in scalability and reliability.
🤣 What does this mean for memes?
The $TRUMP and $MELANIA launches have ignited speculation about the future of meme coins in the cryptocurrency market. With $TRUMP reaching a $14 billion market cap shortly after launch, celebrity-backed meme coins clearly have the power to disrupt the market.
These launches may mark the start of a trend where politicians and celebrities issue meme coins to leverage their brands and followings. Trump’s ability to dominate the crypto narrative shows how influential figures can drive massive market movements, potentially encouraging others to enter the space and further legitimize meme coins as a cultural and financial phenomenon.
However, the volatility of these coins is a cautionary tale. Extreme price swings and concentrated ownership—Trump-affiliated entities control 80% of $TRUMP—raise concerns about manipulation and conflicts of interest. The collapse of the Hawk Tuah meme coin, which lost 95% of its value shortly after launch, underscores the risks of hype-driven markets, where late investors often suffer significant losses.
While meme coins like $TRUMP may draw new audiences and monies to crypto, they also raise questions about transparency, ownership, and market manipulation. The Trump family’s ventures could signal the beginning of celebrity-affiliated digital assets, blending speculation with influence in ways the market has never seen. Whether this trend will endure or fade remains uncertain.
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