Trump Tokens Collapse 60% Amid Profit-Taking, Investors Face Heavy Losses

The excitement surrounding Trump-themed memecoins has quickly evaporated, with TRUMP and MELANIA tokens plunging as much as 60% in the past 24 hours. The sharp declines followed heavy profit-taking in the wake of Monday’s inauguration, leaving many investors with significant losses.

Futures tied to the tokens mirrored the downward trend, with nearly $70 million in liquidations reported as traders betting on higher prices were caught off guard.

Record Trading Volumes Fail to Sustain Prices

Despite the downturn, both tokens saw remarkable trading volumes. TRUMP amassed $19 billion in 24-hour trading volume, while MELANIA recorded $4.5 billion. By comparison, major cryptocurrencies like Tron (TRX) and Cardano (ADA) generated less than $4 billion in volume during the same period, underscoring the initial frenzy for the Trump family tokens.

However, trading activity has since slowed considerably. Data from Moonshot, one of the first platforms to offer TRUMP, shows that trading volumes dropped from an average of $6 million on Jan. 18-19 to just over $1 million in the past 24 hours, according to a Dune Analytics dashboard by @Seoulcalibur.eth.

Markets Disappointed by Lack of Crypto Mentions in Trump’s Speech

The broader crypto market also faltered as traders anticipated pro-crypto announcements in Trump’s inaugural speech, such as a strategic bitcoin reserve. The omission of any such references led to Bitcoin (BTC) falling from a high of $109,000 to just over $101,000 by Tuesday morning in Asia.

Solana’s Bright Spot Amidst the Decline

Amid the turmoil, some analysts remain optimistic about Solana (SOL), the blockchain on which TRUMP was launched. The token’s debut is seen as a vote of confidence in the network’s capabilities.

“The launch of $TRUMP on Solana highlights the chain’s strengths and could accelerate the approval of a SOL ETF,” said QCP Capital, a Singapore-based trading firm, in a Tuesday briefing. “The media attention from such high-profile launches is likely to drive retail participation in the ecosystem.”

The firm added, “The memecoin launch appeals not only to retail speculators but also signals Trump’s pro-crypto stance to institutions. Many are now waiting for tangible crypto policies that could shape the future of the market and economy.”

Mixed Sentiment as Investors Await Next Moves

While the Trump-themed memecoin frenzy has cooled, the potential for pro-crypto policies under Trump’s administration keeps optimism alive. Investors and institutions alike are watching closely to see whether this initial hype can translate into long-term gains for the broader crypto market.