Trump’s Memecoin Launch Sparks Solana’s TVL Surge Past $10B: What You Need to Know!

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What to know:

  • The launch of Donald Trump’s official memecoin helped Solana’s price and trading volume surged, helped its total value locked surpass $10 billion for the first time since the FTX collapse.
  • Trump’s memecoin is now the third-largest across all blockchains in terms of market capitalization and boosted perceived odds of a solana ETF launch.
  • The launch of a cryptocurrency endorsed by a U.S. President suggests a shift towards a more permissive approach to cryptocurrency innovation in the United States.

The meme-based coin associated with outgoing U.S. President Donald Trump has sparked increased curiosity towards Solana (SOL), causing a spike in its price and trading activity. This surge significantly contributed to Solana’s network total value locked (TVL) surpassing $10 billion for the first time since the FTX crash.

The decision by Donald Trump to launch his memecoin on the Solana platform has caused SOL to surge over 23% since the announcement, reaching an unprecedented peak in its price and increasing the value of dollars tied up in its smart contracts. As per DeFiLlama’s data, the total value locked (TVL) on Solana currently stands at a record high of $12 billion.

As a researcher observing Solana’s network value, I’ve noticed a consistent upward trend measured in SOL since last year. Notably, this value has just surpassed the 45 million SOL mark, a level not seen since August 2022, a time before the FTX collapse. Interestingly, Sam Bankman-Fried, a significant Solana advocate and co-founder of FTX, was active during that period.

According to the BBC’s report, Donald Trump’s official memecoin, $TRUMP, is being managed by CIC Digital LLC, a company connected to Trump, and Fight Fight Fight LLC. These two entities collectively hold 80% of the total supply of the memecoin that will be distributed over the next three years.

Right now, this popular meme-based cryptocurrency (often seen in news headlines) is ranked third among all blockchain networks in terms of total value, with only Shiba Inu and Dogecoin having a higher market cap. This coin will soon be available for trading on big exchanges like Binance and Coinbase.

The new token was introduced by a collective of Solana ecosystem members, which included Jupiter and Meteora, sparking a trading craze on the platform’s decentralized exchange networks. According to DeFiLlama, Raydium generated more fees in a 24-hour period than Tether did.

On social media, Moonshot, the platform for trading meme coins that was highlighted by President-elect Donald Trump on a meme coin’s website, reported a whopping $400 million worth of trades within a 12-hour period after its launch. This surge in activity also led to over 200,000 new users joining the network.

Choosing the network also significantly increased the likelihood that a Solana exchange-traded fund (ETF) might debut in the first half of the year, as suggested by Polymarket traders. Their initial assessment of a 43% probability for such a product’s launch by July 31 was revised to a 61% chance.

Over the weekend, there’s usually a decrease in trading activity due to fewer institutional and professional traders being active. However, this quiet period can sometimes spark a trading craze. Consequently, it’s possible that such speculation will persist throughout the week as well.

Additionally, the debut of the memecoin is attracting a flood of new users towards Solana, offering the network – which has experienced several major downtimes – a chance to demonstrate its resilience. Should it pass this trial, the Solana environment might continue to receive substantial growth.

Introducing Trump’s token implies a shift in the U.S. administration’s attitude towards the crypto industry, bestowing it with greater credibility. In essence, by minting a Solana-based meme coin, the President of the global economic powerhouse has given the sector a significant boost in legitimacy.

As a researcher observing the scene, I find myself intrigued by the launch of this meme coin, which seemingly heralds a significant shift in American fintech policy, encouraging a more permissive environment for groundbreaking innovation. This is according to Erik Voorhees, a pioneer in the crypto world and founder of Shapeshift, who has shared his insights on the matter.

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2025-01-20 00:03