In less than six months, the total market cap of meme coins more than doubled. At one point in Q3 2024, it was hovering just below the $50 billion mark. After Donald Trump won, things changed.
At its peak, the total market cap of all meme coins had shot to above $115 billion. Even though the subsequent cool-off across the crypto scene impacted valuations, optimism is high that the industry is here to stay and meme coins will continue to play a critical part in driving adoption.
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Meme Coins and Crypto Under Pressure
This assessment is especially so following the unexpected launch of the TRUMP meme coin on January 18. It was a surprise to the crypto and meme coin community when the Solana token launched on Friday, after hours. Within three days, the token had shot up to as high as $73, lifting its total market cap to over $15 billion.
Although TRUMP prices have since contracted, posting sharp losses after the January 20 inauguration, optimism is high that the token could, in the coming weeks and months, be a top 10 coin, perhaps flipping Dogecoin. According to Coingecko, Dogecoin is the most valuable meme coin with a market cap of over $49 billion.
Will TRUMP Become A Top 10 Coin?
The launch of the TRUMP meme coin was timely, coinciding with the political fanfare and increasing public interest tied to the president. Accordingly, it was not a surprise that prices sharply rose after launching, racing from above $5 to slightly over $73.
At this valuation, TRUMP was among the top 20 coins, even flipping Chainlink, Avalanche, and Stellar. These are solid projects redefining decentralized finance and even real-world asset tokenization.
After the launch of the MELANIA token on January 20, prices began falling. At the time of writing, the meme coin is trading at around $30, commanding a market cap of around $5.9 billion. It is more valuable than Aave, Aptos, and Internet Computer, according to Coingecko data.
Now, on X, an analyst said the TRUMP rally could just be getting started. Citing technical candlestick formation, he noticed that the token bottomed at $25, a 68% slump from all-time highs.
$TRUMP bottomed at $25
– 68% drawdown from highs
– 8 days of downward trend
– Bottoming structure, momentum reversing
– Still barely $6b market cap for a brand more known than EthereumTarget: Top 10 Coin pic.twitter.com/RjHiFMAXwH
— Andrew Kang (@Rewkang) January 28, 2025
Although prices crashed for eight straight days, the recovery is clear. The token is, most importantly, bottoming out, and the upside momentum is building up.
If buyers step in, it is highly likely that TRUMP, in his view, will roar and break into the top 10 within three months.
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What to Watch Out For
Ambitious as it may be, it is clear that TRUMP’s value is a reflection of the president’s brand.
Because of his policies and stand on multiple issues, including immigration and technology, the president is a global icon, and TRUMP will ride on this trend.
All the same, it is still crucial to understand that meme coins are heavily reliant on hype. Although TRUMP may be shielded by the president’s popularity, it may still suffer should crypto prices nosedive and the hype end. Already, after the inauguration, TRUMP prices fell and remain flat, not replicating the surge seen on the first two days after launch.
Additionally, unlike other meme coins, including Dogecoin or even Shiba Inu with Shibarium, TRUMP is underdeveloped with no clear use case. It has no product or platform and therefore exists purely for speculation.
As a result, unless the president’s team announces a use case, TRUMP may fail to sustain the upside momentum, especially after his term ends. Shiba Inu and Dogecoin, in contrast, have managed to sustain their huge valuations despite periods of sharp downturns.
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