- In anticipation of Trump’s inauguration, the Dogecoin community expected January 20th to be a significant day for memecoins
- The launch of the $TRUMP memecoin caused Dogecoin to lose over 15% in value, while $TRUMP gained over 500%
- This shift in market dynamics suggests that the Trump coin’s launch drained liquidity from other memecoins, creating a seesaw effect
In the buildup to Donald Trump’s inauguration, many in the Dogecoin community were anticipating January 20th to be the memecoins’ “D-day”.
The official announcement arguably of the most pro-crypto U.S. President ever, and the fact that he was backed by Dogecoin’s most popular ambassador—Elon Musk—caused investors to anticipate a huge surge in interest toward the currency on the day of the Presidential inauguration.
Up until now, however, that is not what the market has seen. Before Donald Trump announced his official $TRUMP memecoin—$DOGE traded above its $0.40 margin, as investors anticipated another go at the $0.48 zone seen in December of the last year.
But what happened was quite the opposite. On January 18th, a.k.a. the $TRUMP launch date, Dogecoin fell from $0.43 to $0.38. The dog-inspired currency would later take yet another hit after the announcement of a Melania Trump memecoin on Sunday, falling to 34 cents a coin.
In total dogecoin lost over 15% in value throughout the weekend—a stark contrast to $TRUMP’s meteoric 513% increase in that same timeframe.
Is $TRUMP Taking Liquidity Away From Memecoins?
Despite being down by 12% in the day, the Presidential memecoin has experienced one of the fastest rises the market has seen in recent times. Since its launch only two days ago, $TRUMP gained over 500% in value and a market capitalization of roughly $8 billion.
This incredible performance in such a short timeframe suggests that its well-timed launch sucked most of the liquidity out of the market, creating a seesaw effect with the Trump coin being on top.
As of right now, the memecoin continues to be extremely volatile with assets ranging significantly in value every hour. While this volatility is likely to appease over the next few days, it will certainly be interesting to see how $TRUMP will continue to affect the market.
There is a strong chance that—as time goes by—the Trump coin becomes an unofficial approval rating measurement for his Presidency. Meanwhile, it will be interesting to see if the currency will continue to dictate the majority of the memecoin market behaviour, or if assets like Dogecoin will regain their footing and reclaim market dominance.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
