President-elect Donald Trump’s memecoin, Official Trump, has seen an explosive price rally, reaching a peak market capitalization of $13.5 billion. The token’s value hit an all-time high of $67 per coin, equating to a fully diluted valuation of $67.5 billion. Although its price has since slightly dipped to $66 per token, it remains one of the most significant performers in the crypto market.
The recent surge can be attributed to prominent exchange listings. Binance has already added the memecoin, while Coinbase has included it on its roadmap for future integration. Decentralized exchange Hyperliquid has also made the token available for trading, contributing to its growing visibility and accessibility.
Despite its meteoric rise, the Official Trump memecoin faces potential hurdles. A large portion of its supply—80%—is reserved for insiders and is scheduled to unlock in three months. This will release 40 million tokens, valued at $2.7 billion, into the market, with additional tokens unlocking daily thereafter. Such selling pressure could challenge the token’s ability to maintain its current valuation.
The Trump team has been reinvesting memecoin proceeds into other cryptocurrencies, particularly Solana. On-chain data reveals that $5 million worth of USDC stablecoins paired against TRUMP were used to purchase wrapped Solana tokens on decentralized platforms such as Jupiter, Orca, and SolFi.
Growing Adoption, But Risks Loom
The memecoin has drawn significant interest from new users. Reports suggest that over 400,000 accounts were created specifically to trade the TRUMP token within just 24 hours of its launch. While this marks a positive step in onboarding new participants into the crypto ecosystem, the possibility of a market crash could quickly sour investor sentiment.
As the memecoin continues to capture attention, its future hinges on its ability to withstand upcoming token unlocks and sustain market demand. If managed effectively, it could solidify its position among the top cryptocurrencies. However, any missteps could lead to a sharp decline, dampening its current momentum.