- Melania’s coin launch saw a $12 billion valuation within hours, sparking massive investor interest.
- $TRUMP token faced a sharp drop after traders shifted focus to Melania’s fast-growing coin.
- The correlation between $MELANIA and $TRUMP highlights meme coin risks and unpredictable market movements.
The cryptocurrency market was jolted when Melania Trump introduced the $MELANIA token, triggering a 40% drop in Donald Trump’s $TRUMP value. Within hours, the Solana-based meme coin surged to a $12 billion valuation, sparking debates over its market impact and long-term sustainability. As of press time, the token is ranked 75th on CoinMarketCap by market capitalization.
$MELANIA’s Meteoric Rise and Market Impact
The $MELANIA meme coin launch came just two days after Donald Trump’s $TRUMP token went live, creating immediate friction. Announced on Truth Social and X, $MELANIA quickly gained traction as centralized exchanges like MEXC, BingX, Gate, and Bitget listed the token. This unprecedented move validated its authenticity and bolstered investor confidence.
Data from Dexscreener revealed that $MELANIA reached a $12 billion valuation within three hours, drawing attention. However, the launch caused $TRUMP’s market value to plunge by $7.5 billion in just 10 minutes. Analysts linked the decline to traders shifting their investments toward Melania’s token.
The $MELANIA project’s allocation strategy includes 35% for the team, 20% for Treasury and Community each, 15% for public distribution, and 10% for liquidity. This structured plan aims to balance innovation and financial backing, yet the volatile initial trading highlighted the risks associated with meme coins.
The Fallout for $TRUMP and Investor Sentiment
The competition between $MELANIA and $TRUMP tokens underlines the unpredictable nature of meme coins. While $TRUMP initially rallied as part of Donald Trump’s promise to support cryptocurrencies during his presidency, the abrupt market shift caught many off guard.
Investors’ sentiment fluctuated as they weighed the impact of $MELANIA’s rise against $TRUMP’s sudden decline. Questions arose about whether both tokens could coexist in a crowded market or if $MELANIA’s dominance would eclipse its counterpart entirely.
Moreover, the timing of $MELANIA’s release added to its significance. Launching just days before Trump’s inauguration amplified its visibility and investor appeal, while also overshadowing the earlier hype surrounding $TRUMP.
On the other hand, the Solana network faces a crisis as surging activity from $TRUMP and MELANIA meme coins caused severe congestion. High fees and transaction delays are straining the network as both tokens push Solana to its limits.
Trump’s Vision for Crypto in His Second Term
Donald Trump’s administration is set to redefine the U.S. crypto landscape. With his inauguration at noon ET on January 20, he promised sweeping changes to support digital asset adoption. Calling himself “crypto president,” Trump is expected to sign executive orders that lower regulatory barriers for cryptocurrencies.
Regulatory bodies like the Securities and Exchange Commission (SEC) are reportedly reconsidering their policies under Trump’s leadership. Industry insiders suggest this shift could lead to reduced enforcement actions and reevaluation of cryptocurrency assets as securities.
