The “official” memecoin of new US President Donald Trump has spurred interest in Solana (SOL), leading to an increase in both its price and trading volume, which has allowed the total dollar value to be locked ( TVL) on the network to exceed 10 billion dollars. for the first time since the collapse of FTX.
Donald Trump’s choice to issue memecoin on Solana has caused SOL to rise more than 23% since its announcement, moving the cryptocurrency’s price to a new all-time high and increasing the dollar value locked on its smart contracts. Data from DeFiLlama shows that TVL on Solana now stands at $12 billion, a new all-time high.
Measured in SOL, the value locked on the network has continued to grow since the beginning of last year and recently exceeded 45 million SOL. This level has not been seen since August 2022, before the collapse of FTX, whose co-founder Sam Bankman-Fried was a major supporter of Solana.
The launch of Donald Trump’s official memecoin, $TRUMP, was coordinated by CIC Digital LLC, a Trump-affiliated organization, the BBC reported. With Fight Fight Fight LLC, they own 80% of the memecoin supply that will come to market over the next three years.
Memecoin, which has made headlines in the field and is expected to be listed on major cryptocurrency exchanges including Binance and Coinbase, is currently the third largest of all blockchains behind Shiba Inu and Dogecoin in terms of capitalization stock market.
The token was launched by a team including Solana ecosystem protocols Jupiter and Meteora and led to a trading frenzy on the network’s decentralized exchanges, with DeFiLlama showing Raydium overtaking Tether in 24-hour fee generation.
Moonshot, the memecoin trading platform featured on President-elect Donald Trump’s social media memecoin website, reported 12-hour trading volume of nearly $400 million after memecoin’s launch, adding that it had onboarded over 200,000 users to the network in the process. .
https://x.com/moonshot/status/1880659326395666759
The choice of network also helped increase the perceived chances of a spot Solana exchange-traded fund (ETF) launching in the first half of the year. Polymarket traders went from a 43% chance of such a product launching by July 31 to a 61% chance.
The trading frenzy came over the weekend, when trading volumes are typically moderate as many institutional investors and professional traders are less active. This means that speculative activity on the network may well continue during the week.
Beyond that, the launch of memecoin brings Solana an influx of new users and offers the network, which has suffered several major outages, the opportunity to demonstrate its robustness. If it stands the test, the Solana ecosystem could continue to see significant inflows.
The introduction of Trump’s token also signals the US government’s changing stance towards the cryptocurrency sector and provides it with increased legitimacy, as the president of the world’s largest economy literally launched a memecoin based on Solana .
The memecoin rollout signals a “shift in US financial technology policy toward much more permissive innovation,” commented Erik Voorhees, founder of Crypto OG and Shapeshifter.
