Written by: HashKey Capital

According to data from Artemis, the memecoin space has taken the industry by storm in 2024, with price performance exceeding 218%, outperforming all asset classes. Behind such amazing performance are various famous memecoins that have achieved unicorn status and widespread community support, such as DOGE, POPCAT, VIRTUAL, PNUT, FARTCOIN, and others. Memecoin’s symbolism, culture, community, and its truly decentralized nature have attracted many users to participate with ease. While some represent specific stories, animals, even beliefs about artificial intelligence, etc., in 2025 they have been eclipsed by an emerging narrative: memes. The memecoin leading the growth of this narrative is TRUMP, a memecoin launched by Donald Trump, the first U.S. president to adopt a friendly stance toward cryptocurrencies.

Why did the market reach this point?

On January 17, 2025, Donald Trump announced the launch of "TRUMP" for the first time on his social account. Three days later, he will be officially sworn in as President of the United States. In less than 24 hours after launch, the token’s market capitalization surged to $4.8 billion, with a fully diluted valuation (FDV) of $24.3 billion. At its peak on January 19, the token price was $75.35 and FDV reached $75.35 billion, already ranking among the top 20 cryptocurrencies and even briefly surpassing Dogecoin to become the largest memecoin by market capitalization.

What’s the significance of $TRUMP’s meteoric rise?

Unlike other types of memecoins on the market, TRUMP Coin is an example of a memecoin that symbolizes the courage and energy displayed by the crypto-friendly president. You may recall that he suffered an assassination attempt during the campaign. In addition to being president, Donald Trump is a successful businessman and controls the Trump Business Group, which owns hundreds of affiliates and subsidiaries that use the Trump brand. Now, with the launch of TRUMP Coin, it marks another attempt by Trump to leverage his personal brand, and the project quickly became a success, climbing into the top 20 cryptocurrencies.

TRUMP coin is not only a community culture-driven speculative asset, its futurePerformance may also be affected by a variety of factors including Trump's stance on the crypto industry, financial and deregulation.

Celebrity effect: from NFT to memecoin

It is worth noting that Trump has participated in the industry by issuing NFT before, but the attention he can attract and The funds are far from comparable to this memecoin. There may be many reasons behind this. For example, the liquidity of NFT cannot be compared with that of general fungible tokens (FT); and the infrastructure currently provided for memecoin (trading platform, trading robot, etc.) is also less than that of 2021. It was even more perfect during the NFT craze in 2016.

Trump may bring a "demonstration" effect to the entire industry. In 2025, more celebrities, stars, KOLs, etc. may choose to issue memecoin. form to build momentum or raise funds. But as some analysts have mentioned, the reason why Trump and his wife Melania issued coins on the weekend before the official inauguration may also be to avoid conflicts of interest. If other celebrities or organizations issue coins in the future, they may also have compliance concerns. How far the celebrity effect will develop in 2025 remains to be seen, but it’s an interesting start.

The community power behind Trump Coin

The previous memecoin craze in the entire industry also laid the foundation for building a strong community foundation. Before Trump released the official Trump coin, there were already many memecoins released by the community, such as MAGA, etc., which reflects the active participation of the community. In addition, Trump’s choice to launch on the Solana platform this time instead of Ethereum or other smart contract platforms can also be attributed to the vibrant and dynamic meme community on Solana.

From these phenomena, it can be seen that the "attention economy" driven by memecoins may gain more attention in the near future. Despite the huge risks of hype and price fluctuations associated with memecoins, the crypto community has demonstrated its value and power through the increasing use of memecoins. Project teams that focus on community values, emotions, and voices are more likely to succeed in the future than teams that have focused solely on narrative.

Potential Risks

Memecoins are inherently highly speculative and volatile assets, and TRUMP is no exception. Within hours of launch, TRUMP’s trading volume exceeded DOGE, and various centralized and decentralized exchanges followed suit and announced the launch of TRUMP. At the time of writing, its 24-hour trading volume reached $42.2 billion, surpassing blue-chip stocks such as XRP, SOL, and DOGE. In addition to the factors mentioned above that may affect the price, it is worth noting that currently the majority of the token has not been unlocked. This creates significant concentration risk, as 80% of the tokens are held by an entity jointly owned by Trump Organization affiliate CIC Digital LLC and an entity called Fight Fight Fight LLC. Token investors should be aware of upcoming liquidity unlocking events, which, as reflected in their unlocking timelines, may exacerbate price volatility.

Source: trumpmemes.com

Outlook

The successful election of Donald Trump, making him the first U.S. president to be friendly to cryptocurrencies, marks a new stage of development for the crypto industry because He promised to issue an executive order related to cryptocurrencies, specifically Bitcoin, within days of taking office. With a pro-crypto majority in the House and Senate, and the election of Paul Atkins, who is known to support crypto innovation, as chairman of the U.S. Securities and Exchange Commission (SEC), we can expect clearer regulation and a mainstream adoption environment for digital assets. will be more beneficial. While the future direction of TRUMP coin remains to be seen, its launch as more than just a speculative asset demonstrates a commitment to supporting the cryptocurrency industry by increasing regulatory transparency and friendliness that support the mainstreaming of cryptocurrencies. This also paves the way for others to follow suit, and leaders around the world, led by the United States, are gradually becoming more positive about the cryptocurrency industry.