Melania Trump's recently launched meme coin, Melania Meme (MELANIA), has caused a significant decline in demand for Donald Trump's official Trump (TRUMP) coin. As a result, TRUMP's market cap has fallen 55% in just 10 minutes, entering a bear market phase.
On January 20, former US First Lady Melania Trump announced the launch of her meme base, MELANIA, on X.
After his inauguration, Donald Trump shared his news at his Victory Rally. As a result of this unexpected move there was a significant drop in demand for TRUMPmeme coin that Donald Trump had launched just 48 hours earlier.
The TRUMP mark, which had exceeded a market cap of $14 billion, had a sharp decline of 55% within just 10 minutes of Melania's announcement. However, as of this writing, TRUMP's market cap has settled at $9.42 billion, with the token trading at $47.19.
Prior to MELANIA's launch, TRUMP was performing well, with buyer orders exceeding seller orders in the market. The token was too are listed on HashKey Global on January 19. According to the Kobeissi Letter, large sales orders, ranging from $1 million to $5 million, accumulated in the spot market.
However, after the launch of MELANIA, the selling pressure on TRUMP exceeded the buying pressure, with $351.7 million in sell orders compared to $244.5 million in purchases within the first hour after the launch. This imbalance contributed to the decline in TRUMP's price.
Kobeissi's letter also noted that the sales pressure on TRUMP went over to Solana (SOL), causing its value to drop by nearly 20% in minutes.
Despite its volatility, TRUMP still has around 824,000 holders, and the token is currently worth around $39 billion. In addition, with an inventory spanning three years, there is a possibility that the token would stabilize in the future.
