TRUMP Memecoin Stirs Interest, But Doesn’t Drive Fresh Capital into Crypto, Says Web3 Analyst

Despite the initial surge in attention and market capitalization, the TRUMP token has failed to significantly increase the overall investment in the crypto market, according to Garrison Yang, co-founder of Mirai Labs. While the memecoin captured significant headlines and gained rapid traction, its effect on the broader market remained minimal.

When launched, the TRUMP token saw its market cap surpass $10 billion on day one, but it has since declined to around $5.3 billion. Meanwhile, the overall cryptocurrency market cap has remained relatively stagnant at around $3.5 trillion, as per data from TradingView and CoinDesk.

Yang observed that while TRUMP gained widespread visibility, it didn’t translate into substantial new capital entering the space. “While $TRUMP made a splash, the broader crypto market cap hardly moved,” Yang said in a statement. “We saw 400,000 new users and even Phantom briefly topping the app charts, but it was largely attention rather than new liquidity.”

According to Yang, the capital that entered the market was mostly recycled from existing investors rather than fresh inflows. “We simply moved the money around. This was particularly evident in the rapid shift of liquidity into Solana’s ecosystem, especially with altcoins,” he explained.

Research by Chainalysis also showed that nearly half of TRUMP and MELANIA token holders were likely first-time buyers of Solana-based tokens. Despite the significant buzz, Yang’s analysis reveals that the new token failed to bring fresh liquidity to the broader crypto ecosystem.