US President's Dinner for TRUMP Memecoin Holders Sparks 52% Price Surge: Can It Last?

Trump stock surged by 52% on April 23 following the announcement of an exclusive deal. in-person dinner For major stakeholders like U.S. President Donald Trump, some cryptocurrency supporters believe this signals the conclusion of the bear market, particularly with Bitcoin’s movement. BTC It rebounded above $93,000, but some people have doubts about how long-lasting the TRUMP memecoin surge will be.

From an operational standpoint, the Official Trump (TRUMP) memecoin has fallen short. Following its peak at over $75 on release day, its value rapidly declined once investors became aware of the significant token concentration and the brief lock-up duration.

Initially, it seems hard to rationalize TRUMP’s present market valuation of $2.6 billion when 80% of the tokens have been released into circulation. allocated to founders and entities under Trump's control.

For comparison, established projects like Arbitrum, ARB ), Jupiter (JUP), and Maker (Maker) MKR ) hold a capitalization below $1.6 billion. Those token valuations derive from buybacks using treasury reserves or direct benefits in staking and DeFi mechanisms. For instance, Arbitrum, a leading Ethereum layer-2 scaling solution, holds $2.4 billion in Total Value Locked (TVL).

Jupiter, the top decentralized exchange (DEX) operating on Solana, reports having $2.3 billion in total value deposited and accumulating $76.6 million in fees within the last thirty days, as per DefiLlama statistics. In contrast, Sky (previously known as Maker), which developed the highly popular DAI stablecoin, manages an impressive $5.9 billion in total locked value along with garnering $28.6 million in fees over the same period of one month.

TRUMP still ranks in the top 10 for trading activity

In addition to being traded on prominent exchanges such as Binance, Bybit, OKX, Coinbase, Upbit, and Kraken, and frequently touted on social media by Trump, the meme coin also boasts significant presence in derivatives markets. Notably, its futures open interest ranks at $700 million, placing it among the top 10 overall.

Projects with market capitalizations exceeding $6 billion, like Chainlink, have been established. LINK ), Litecoin ( LTC ), and Polkadot ( DOT They have lower futures open interest compared to TRUMP. Nonetheless, even though participation from bigger traders in futures markets enables them to join the activity, this doesn’t automatically indicate positivity since buyers and sellers are always balanced out.

Despite TRUMP being traded at an 84% discount from its peak value, it still ranks among the top ten tokens based on trading volume. Actually, when we exclude stablecoins, just four digital currencies have higher 24-hour volumes than TRUMP’s substantial $3.84 billion, as reported by CoinGecko.

Even with substantial trade volume, a solitary promotion involving U.S. President Trump may not generate enduring interest in the TRUMP memecoin, thus questioning the sustainability of its present $13.50 valuation. Without addressing investors' concerns, the situation remains uncertain. concerns about token unlocks There is scarcely a method to rationalize the 50% higher cost compared to cryptocurrencies that provide functionality and potential for expansion.

It should be mentioned that Shiba Inu ( SHIB ), another meme coin offering little practical use, currently has a market cap of around $8 billion. Therefore, it’s reasonable to suggest that a token endorsed by the current U.S. President would be valued significantly higher, potentially leading to price targets as high as $30 or above for TRUMP.

The content of this article serves only as general information and does not constitute legal or financial guidance. Opinions stated herein belong solely to the writer and do not necessarily express the viewpoints held by Cointelegraph.

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