The TRUMP memecoin, while initially sparking immense attention and briefly driving up market capitalization, has not been able to attract significant new investments into the cryptocurrency sector, according to Garrison Yang, co-founder of Mirai Labs. Despite its meteoric rise, the token’s impact on overall market growth has been minimal.

Launched with great fanfare, the TRUMP token saw its market cap reach over $10 billion on the first day, but it has since dropped to around $5.3 billion. Meanwhile, the total crypto market cap has hovered around $3.5 trillion, showing little movement, based on data from CoinDesk and TradingView.

Yang explained that although the TRUMP token generated substantial media coverage and attracted new users, it didn’t lead to a real influx of fresh capital. “While we onboarded a lot of attention with $TRUMP, the overall liquidity injected into the token was minimal, and the broader market cap barely moved,” he noted.

Yang emphasized that much of the activity surrounding the token was driven by existing capital, which was largely moved from one part of the market to another, particularly into Solana’s ecosystem. “The market saw money flow into Solana altcoins, but it was mostly just a reshuffling of funds,” Yang said.

Chainalysis research confirmed that around 50% of TRUMP and MELANIA token holders were likely new to the Solana-based token ecosystem. Despite the hype, Yang believes the effect of the TRUMP token on long-term market liquidity remains limited.