TRUMP Memecoin Launch Pushes Solana’s TVL Beyond $10B for the First Time Since FTX Collapse.

Trump’s Official Memecoin Boosts Solana’s Price and Trading Volume, Elevating Hopes for a Solana ETF

The launch of Donald Trump’s official memecoin on the Solana blockchain has not only sparked a significant rise in Solana’s price and trading volume but has also reignited discussions about the potential for a Solana exchange-traded fund (ETF).

The $TRUMP memecoin, which Trump has officially endorsed as his “official” memecoin, has greatly increased interest in the Solana network. As a result, Solana’s price surged and the total dollar value locked (TVL) on the network surpassed $10 billion for the first time since the FTX collapse. According to DeFiLlama, TVL on Solana has hit a new all-time high of $12 billion, reflecting growing investor confidence in the network.

Since Trump’s announcement, SOL has jumped over 23%, reaching new all-time highs and driving increased capital into Solana’s smart contracts. The value locked in Solana’s smart contracts has been steadily increasing since the beginning of 2023, recently surpassing 45 million SOL—an amount not seen since August 2022, prior to the collapse of FTX and the fall of its co-founder, Sam Bankman-Fried, who had been a key supporter of Solana.

Impact of the TRUMP Token Launch

The $TRUMP memecoin was launched by CIC Digital LLC, a Trump-affiliated company, and Fight Fight Fight LLC, which together hold 80% of the token’s total supply, set to be released over the next three years. This has made $TRUMP one of the largest memecoins by market capitalization, ranking third behind Dogecoin (DOGE) and Shiba Inu (SHIB).

The launch has created a stir in the cryptocurrency space, with trading activity surging on Solana’s decentralized exchanges. According to DeFiLlama, Raydium, one of Solana’s key decentralized exchanges, surpassed Tether (USDT) in terms of 24-hour fee generation. Additionally, Moonshot, the memecoin trading platform promoted by Trump on social media, reported nearly $400 million in 12-hour trading volume and onboarded over 200,000 new users.

Rising Expectations for a Solana ETF

The launch of the TRUMP memecoin has also led to a significant increase in the perceived likelihood of a Solana ETF. According to traders on Polymarket, the chance of a Solana ETF being launched by July 31 has risen from 43% to 61%, reflecting growing optimism about Solana’s future prospects. This shift in expectations is largely driven by the heightened market activity and renewed interest in the Solana blockchain.

Speculative Momentum Expected to Continue

The surge in Solana’s activity came over the weekend, typically a quieter period for institutional investors. As a result, speculative activity could continue throughout the week, further bolstering Solana’s market presence.

Solana’s Opportunity to Prove Its Resilience

The launch of Trump’s memecoin is also providing Solana with an opportunity to showcase its network’s resilience. Given the blockchain’s history of major outages, the increased user base brought in by the TRUMP token will serve as a stress test for the network. If Solana proves to be stable under this heightened traffic, it could see continued growth and further investor inflows.

Shifting U.S. Government Views on Crypto

Beyond the technical and market implications, the launch of Trump’s token signifies a broader shift in the U.S. government’s approach to cryptocurrency. By backing a Solana-based token, Trump is indirectly lending legitimacy to the cryptocurrency space, particularly to Solana itself.

Erik Voorhees, founder of Shapeshifter, noted that the $TRUMP memecoin rollout is indicative of a shift in U.S. fintech policy toward more permissive innovation. This change could have a lasting impact on the regulatory landscape for cryptocurrency in the U.S., encouraging further growth and adoption of blockchain technology.