While the TRUMP token generated substantial attention, it failed to bring in significant new capital to the crypto market, according to Garrison Yang, co-founder of Mirai Labs. In a comparative analysis of TRUMP’s market cap against the total crypto market cap, it became clear that although the memecoin had a noticeable impact, its effect on overall market growth was limited.
Launched with great fanfare, TRUMP saw its market cap surge to over $10 billion on its first day. However, as of now, it has dropped to around $5.3 billion. Meanwhile, the total cryptocurrency market cap has remained relatively unchanged, hovering around $3.5 trillion, based on data from TradingView and CoinDesk.
Yang pointed out that while TRUMP gained significant attention, the overall crypto market cap has seen little movement. “While $TRUMP is now worth billions, the total crypto market cap has barely moved. It’s exciting to say that 400,000 users were onboarded, and Phantom briefly became the number one app, but in reality, we mostly captured a lot of attention,” he stated in an email.
He emphasized that, in terms of actual liquidity, much of the capital flowing into TRUMP came from existing players rather than new investors. “We ended up moving the hot ball of money around,” Yang explained. “You can especially see this on-chain with altcoins on Solana, where liquidity rapidly shifted into the Solana ecosystem.”
Recent Chainalysis research indicated that about 50% of TRUMP and MELANIA token holders were likely first-time buyers of Solana-based tokens. However, Yang’s analysis suggests that the hype surrounding the TRUMP token didn’t result in substantial new inflows or capital growth for the broader crypto market.
