Trump Memecoin Skyrockets, XRP & ETH Plummet!

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What to know:

  • Trump-themed memecoin on Solana attracted $3B, affecting XRP and ETH and boosting SOL.
  • The new memecoin’s price surged from cents to $14 in early hours Saturday.

On Saturday, high-performing XRP (XRP) and Ethereum‘s ETH experienced a period of profit-taking, as a Trump-themed memecoin with “official” status drew in approximately $3 billion in its initial hours on the Solana network. This surge in popularity led to increased demand for Solana’s SOL tokens.

As a researcher studying cryptocurrency market dynamics, I observed a relatively subdued price-action in major coins such as Bitcoin (BTC), Dogecoin (DOGE), and BNB Chain’s BNB. The recent announcement of the TRUMP token has significantly influenced the sentiment surrounding XRP and Ethereum (ETH). Traders seem to interpret the TRUMP memecoin’s decision to issue on Solana as potentially bearish for Ethereum, which could impact its price movement in the near future.

A “legitimate” meme-based cryptocurrency associated with Donald Trump was launched early on Saturday morning in Asia, according to posts on his verified X and Truth Social accounts. The value of the coin fluctuated from a few cents up to $14 within just six hours, causing widespread uncertainty as people speculated whether the token had Trump’s endorsement.

Some fund managers view this action as optimistic for meme-based cryptocurrencies: “The newly elected leader has given people permission to create a memecoin – $SOL is picking up on this signal, so hold tight,” as stated by Placeholder VC partner Chris Burniske on platform X.

The newly elected leader has granted permission for everyone to create their own meme-based cryptocurrency, and it appears that $SOL is taking note. Hang on tight!

— Chris Burniske (@cburniske) January 18, 2025

In other places, XRP experienced a drop of up to 5%, reducing its previous week’s gains which amounted to approximately 40%. The interest in XRP has increased significantly since early November, following the victory of Republican Trump in the U.S. presidential elections and his plans to foster a thriving local crypto market. This positive outlook has been beneficial for tokens associated with American companies, such as XRP, which is closely connected to New York-based Ripple Labs.

On Friday, XRP surpassed $3 for the first time since 2018, preceding President Trump’s inauguration on January 20th. This surge in value was sparked by rumors that Trump might support a U.S.-centric strategic reserve favoring American-born digital currencies such as Solana, USD Coin, and Ripple.

Talks of any strategic reserve have so far only included plans for bitcoin holdings.

As a cryptocurrency investor, I was intrigued when I learned that Brad Garlinghouse, the CEO of Ripple, had a meeting with the President-elect back in early January. This revelation sparked speculation about a possible direct line for Ripple to influence the incoming administration. With this potential connection, there’s been an increased buzz surrounding XRP, leaving me excited to see how things unfold.

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2025-01-18 13:13