The recent debut of Melania Trump’s meme coin, Melania Meme (MELANIA), has led to a significant drop in interest for Donald Trump’s Official Trump (TRUMP) coin. Consequently, TRUMP’s market capitalization plunged by 55% within a mere 10 minutes, entering a bear market stage.
On January 20, Melania Trump, the former First Lady of the United States, revealed the launch of her meme coin, MELANIA, via a post on X.
Following her announcement, Donald Trump mentioned it during his Victory Rally. This surprising reaction resulted in a sharp drop in demand for TRUMP, a meme coin unveiled by Donald Trump just 48 hours prior.
The TRUMP token, which had previously exceeded a $14 billion market cap, witnessed a dramatic 55% decline just minutes after Melania’s announcement. As of now, TRUMP’s market cap has settled at $9.42 billion, with the token trading at $47.19.
Leading up to MELANIA’s launch, TRUMP was showing strong performance, with buying activity surpassing selling activity in the market. The token was also listed on HashKey Global on January 19. According to the Kobeissi Letter, substantial sell orders, ranging from $1 million to $5 million, built up in the spot market.
In the wake of MELANIA’s launch, the selling pressure on TRUMP overwhelmed the buying interest, with $351.7 million in sell orders compared to $244.5 million in purchases within the first hour post-launch. This disparity played a significant role in the decrease in TRUMP’s price.
The Kobeissi Letter also pointed out that the selling pressure on TRUMP impacted Solana (SOL), contributing to its nearly 20% drop within minutes.
Notwithstanding the fluctuations, TRUMP still has about 824,000 holders, with its current valuation hovering around $39 billion. Moreover, due to a vesting schedule of three years, there is potential for the token to achieve stability in the future.
