Melania Trump’s newly launched meme coin, Melania Meme (MELANIA), has caused a sharp decline in demand for Donald Trump’s Official Trump (TRUMP) coin. As a result, TRUMP’s market cap has dropped by 55% in just 10 minutes, entering a bear market phase.
On January 20, Melania Trump, the former First Lady of the U.S., announced the launch of her meme coin, MELANIA, on X.
Following her post, Donald Trump shared her announcement during his Victory Rally. This unexpected move led to a sharp drop in demand for TRUMP, a meme coin Donald Trump had launched just 48 hours earlier.
The TRUMP token, which had surpassed a $14 billion market cap, experienced a sharp 55% decline within just 10 minutes of Melania’s announcement. However, as of this writing, TRUMP’s market cap has stabilized at $9.42 billion, with the token trading at $47.19.
Before the launch of MELANIA, TRUMP was performing well, with buyer orders outpacing seller orders in the market. The token was also listed on HashKey Global on January 19. According to Kobeissi Letter, large sell orders, ranging from $1 million to $5 million, accumulated in the spot market.
However, after MELANIA’s launch, the selling pressure on TRUMP outweighed the buying pressure, with $351.7 million in sell orders compared to $244.5 million in buys within the first hour post-launch. This imbalance contributed to the decline in TRUMP’s price.
Kobeissi Letter also noted that the selling pressure on TRUMP spilled over to Solana (SOL), causing its value to drop by nearly 20% in minutes.
Despite the volatility, TRUMP still boasts around 824,000 holders, and the token is currently valued at approximately $39 billion. Additionally, with a vesting schedule spanning three years, there is potential for the token to stabilize in the future.
