However, those gains appear to have evaporated rapidly following President Donald Trump’s inauguration ceremony on Monday, when he made no mention of cryptocurrency in his speech.
The launch of the Trump meme coins saw immediate market enthusiasm. However, those gains appear to have evaporated rapidly following President Trump’s speech on Monday, when he made no mention of cryptocurrency. This omission coincided with a swift downturn in the digital assets’ valuations, leaving many investors questioning whether the recent meme coin boom is now over.
According to data gathered in the hours after the inauguration, the Trump meme coin, a Solana-based token, plunged by more than 38 percent within minutes of trading, shedding billions in market capitalization. Simultaneously, the Melania coin experienced a similar fate, dropping nearly 28 percent over the same period. Traders and analysts say the broader cryptocurrency market also took a hit, with Bitcoin retesting lows around the $102,000 mark—an event some attribute to broader uncertainty surrounding the new administration’s stance on digital currencies. So, what happened?
Trump Coin’s Rapid DeclineSource: CoinMarketCap
In the lead-up to the inauguration, the Trump meme coin garnered substantial attention. Its surge was fueled partly by speculation that the former president, who had shown an interest in digital currencies during campaign discussions, might address or endorse crypto on a national stage. However, in what some market observers call a “buy the rumor, sell the news” scenario, Trump’s decision not to highlight cryptocurrency during his oath-taking speech sparked concern among traders.
Shortly after the ceremony, the Trump token fell out of the top 20 cryptocurrencies, slipping to the 23rd position with a market cap of $8.52 billion.
Despite this, its trading volume exceeded $39 billion in a single day, suggesting that both early investors and newcomers cashed out to avoid potential losses. Historical parallels were drawn to a prior election cycle, when a similar category of political tokens witnessed a drastic sell-off—some losing 60 percent of their value within 48 hours.
Melania Meme Coin Follows SuitSource: CoinMarketCap
Launched by Melania Trump on Monday, the Melania meme coin initially soared over 80 percent, hitting an all-time high of $13.64 before a steep correction set in. While the token’s developers touted it as “the only ‘Official Melania Meme’” and saw an influx of buyers, the hype proved short-lived. Trading volume topped $6 billion but did little to stem the sudden 28 percent price drop later in the day. At one point, the coin was down 42 percent from its peak.
Melania Trump announced the token’s debut on social media, emphasizing that it was intended “for collecting and entertainment purposes only.” Yet the swift rise and fall drew comparisons to other meme coins whose values hinge on community sentiment rather than traditional financial indicators.
For Trump to redeem himself, crypto investors hope he will announce the long-awaited Bitcoin National Reserve. And perhaps, an American crypto Reserve that holds XRP. Anything less will be seen as a disappointment.
