SOL Rises by 5% as TRUMP Rallies

One of the strongest tailwinds influencing its positive performance during this period is a 46% increase in the price of Official Trump ($TRUMP), the official Solana-based meme coin of the President of the United States.

Trading volumes for Trump’s celebrity token have surged by 113.7% in the past 24 hours, with nearly 200m tokens changing hands during this period.

The combined market cap of meme coins as a whole is rising by 9.8% in the past day to $76.3 billion, as other strong assets in the category like Pepe (PEPE), whose market cap is almost the same as TRUMP, Dogecoin (DOGE), and Bonk (BONK) are up by 9.1%, 8%, and 9.6% respectively.

In contrast, the Official Melania Meme (MELANIA) is the worst-performing meme coin of the top 10 assets in this category, with losses of 78.9% year-to-date.

The crypto community was shocked once the tokenomics of the two projects were released as the public would only get 10% of all TRUMP tokens while insiders will receive an eye-popping 80% of the total supply of 1 billion tokens.

Currently, the circulating supply stands at 200 million coins. The remaining tokens will be released throughout the next three years based on a vesting schedule that is available on the Get Trump Memes website.

TRUMP Is Now as Big as PEPE

TRUMP’s dominance in the meme coin space currently sits at 6%. This means that a 10% move can prompt a 0.6% jump in the aggregated value of all tokens as tracked by CoinMarketCap. Comparatively, Dogecoin and Shiba Inu, the two most valuable meme coins in the world, have dominance levels of 54.1% and 13.1% respectively.

From a technical standpoint, Trump has decisively broken a key resistance level at $20.65 that the market rejected two times in early February.

The hourly chart shows that positive momentum has picked up its pace to the point of pushing the Relative Strength Index (RSI) to wildly overbought levels at 81. This is an extreme reading that could have positioned Trump for a sharp pullback, as early rally buyers could be prepared to cash in on their fruitful trades.

Meanwhile, the MACD’s histogram shows that positive momentum is already on a descent. This does not necessarily mean that a pullback will occur, as this would only be confirmed if the RSI crosses below the signal line.

Solana’s DeFi Apps Benefit from TRUMP’s Rally Too

TRUMP’s influence on Solana’s network activity is no small thing. The token already caused transaction delays when the President publicly acknowledged his link to the meme coin.

In fact, Coinbase was forced to issue an apology amid a backlog of TRUMP orders that were not fulfilled timely as the Solana blockchain experienced significant congestion.

Apart from SOL, Jupiter (JUP), the native asset of Solana’s most popular DEX aggregator, and Raydium (RAY), the ecosystem’s largest decentralized exchange, are also experiencing 16.6% and 16.8% upticks in their prices.

The President’s decision, or his team’s for that matter, to pick Solana as the preferred blockchain for $TRUMP was a huge blow to this Ethereum competitor.

Since January 17, almost $2 billion in stablecoins have flowed to the Solana ecosystem, according to data from DeFi Llama.

However, the TRUMP tailwind may be fading already, as the 7-day moving average of active addresses in the Solana network has declined from a peak of 5.69 million back on January 24 – a few days after TRUMP’s launch – to 4.42 million as of yesterday.