In brief
- President Trump’s official meme coin has jumped 46% over the last week, rebounding after a steep drop earlier this month.
- Jasper De Maere, desk strategist at Wintermute, told Decrypt the rise may be the result of a “relief rally” as trade war tensions ease.
- Trump Media this week announced it’ll create a prediction market, and World Liberty Financial has started an airdrop that may have “sparked a speculative rally.”
President Trump’s official meme coin has rallied over the past week, climbing 46% to a $1.67 billion market capitalization. One analyst believes this could be the result of a “relief rally,” following Trump’s plethora of macro pressures appearing to ease.
The Solana token has been on a downward trend since the crypto dinner held for the top TRUMP holders in May, hitting an all-time low market cap of nearly $1 billion on October 10. The low came after Trump threatened massive tariffs against China, which led to a major downturn in the crypto markets and the biggest liquidation event in crypto history.
In the more than two weeks since then, TRUMP has risen by about 55%, according to CoinGecko. Trading volume has skyrocketed over the last couple days, too, from a typical daily tally of $200-$300 million to almost $2.4 billion over the last 24 hours, per CoinGecko.
While there is “no clear catalyst” to TRUMP’s recent surge, Jasper De Maere, desk strategist at Wintermute, told Decrypt that it’s logical the token would pump now that these pressures are easing.
“As TRUMP remains central to the president’s broader ‘PolitiFi’ narrative, it’s natural for the token to catch a bid, especially after a period of sustained pressure, triggering a relief rally that’s drawing renewed mind share, trading activity, and upward price momentum,” De Maere explained.
On Wednesday, for example, the U.S. secured a trade deal with South Korea, which will see both nations reduce reciprocal tariffs on each other. Similarly, on Sunday, the U.S. and China agreed on a framework for a potential trade deal.
This followed Trump’s threat of 100% tariffs on Chinese goods earlier this month, which prompted a $19 billion crypto liquidation cascade—the largest in crypto history.
Earlier this year, Trump reposted an article by Newsmax that claimed that his official meme coin worked as a way to track the president’s performance, as an alternative to polls and approval ratings. As such, the token’s recent dive may have been tied to investors growing tired of Trump’s trade wars, but it has since surged as those concerns have started to fade.
Similarly, on prediction market Myriad, Trump’s approval rating plummeted from 50.8% to a low of 35.6% following the record-breaking liquidation cascade. The President’s approval rating has been climbing ever since, now sitting at 49.2%—mirroring the rise of the TRUMP meme coin. (Disclosure: Myriad is developed by Decrypt’s parent company Dastan.)
Furthermore, there has been a spree of Trump-linked crypto news of late. On Tuesday, Trump Media announced that it will launch a prediction market called Truth Predict in collaboration with Crypto.com. The platform will allow users to wager money on sporting events, elections, and other events.
Furthermore, the Trump-backed World Liberty Financial announced on Wednesday that it would start distributing 8.4 million WLFI—worth approximately $1.2 million—to early adopters of its USD1 stablecoin. World Liberty Financial added that “this is only the beginning,” and that its “points program” will “continue expanding.”
De Maere from Wintermute suggested that the two announcements may have also “sparked a speculative rally,” as TRUMP has climbed 22.8% to $8.45 per token over the past 24 hours.
Still, TRUMP remains down 88.6% from its all-time high of $73.43, set just days after launch.
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Source: https://decrypt.co/346695/president-trump-solana-meme-coin-hot-again-jumping-46-amid-relief-rally
