TRUMP is currently the 3rd most market-capitalized memecoin on all blockchains, behind only Shiba Inu and Dogecoin.

The source of the surge

As reported, President Donald Trump has just released a memecoin called Trump Memes on Solana, inspired by the message "Fight, Fight, Fight" in the "failed assassination" last July.

In just the first hour, TRUMP's price reached a "huge" capitalization of 3.5 billion USD, the community FOMOed to buy this memecoin, pushing the trading volume to nearly 420 million USD.

However, this morning, public opinion was shocked when it was the turn of the new First Lady Melania Trump to reveal that she would launch her own memecoin with the code MELANIA. Immediately after this news, the price of memecoin TRUMP "sunk" 45%.

TRUMP has been listed on major exchanges such as Binance and Coinbase, and is currently the third-largest memecoin on all blockchains by market capitalization, behind only Shiba Inu and Dogecoin.

On-chain activity explodes

The emergence of the memecoin TRUMP has created a “seismic” in the crypto community. Not only has it increased the value and trading volume of Solana (SOL), it has also contributed to bringing the network TVL back to the $10 billion mark since the collapse of FTX.

As of now, Solana's TVL is approaching $12 billion, an all-time high, according to data from DeFiLlama. Solana's locked value has been on the rise since the beginning of last year, reaching 45 million SOL, a level not seen since August 2022.

Solana's 24-hour DEX trading volume reached $23.7 billion, accounting for 65% of the DEX market share, an all-time high. This figure is three times the total trading volume of Ethereum and all layer-2s combined.

Raydium, a popular DEX on Solana, even surpassed Tether in 24-hour transaction fee revenue. Moonshot, a memecoin trading platform introduced on the memecoin website and shared on Mr. Trump's media channels, also recorded a volume of 400 million in the first 12 hours of its launch.

More than 200,000 new users have generated transactions during this time. Moonshot also "overthrew" ChatGPT on the Apple Store app rankings.

The network is weighed down

In addition to the above achievements, the appeal of Trump's memecoins has unintentionally become a burden on the Solana ecosystem.

In particular, in the 3 hours after Melania's launch, Jito was almost disrupted:

The average priority fee increased by 5000 times.

The number of transactions decreased by 66%.

CUs (Computational Units) per block decreased by 50%.

The Phantom wallet application alone had a hard time, having to witness 8 million requests per minute worth 1.25 billion USD and more than 10 million transactions today.

Coinbase users also struggled to deposit and withdraw on Solana during this time.

At the time of writing, the situation has improved significantly, and dApps have generally controlled the overload.

Trump's Memecoin is a new beginning

In any case, the TRUMP memecoin also contributed to the "green light" for the possibility of approving a Solana ETF this year. According to data from Polymarket, the probability of betting on this product has increased from 43% to 61%.

This is also a big financial step, representing the US government's policy stance towards the crypto industry, when the President of the world's largest economy officially releases such a product.

Looking further, TRUMP not only helps Solana attract a new user base, but also gives the network an opportunity to prove its resilience and sustainability, especially after past chain failures.